In this episode, Jerry Davidse of Presilium explains why successful investors do not avoid every market downturn. Instead, they prepare for them in advance. From wars and recessions to inflation, banking crises, political uncertainty, and pandemics, markets have faced plenty of difficult periods throughout history. Yet long-term investors who stayed disciplined have often been rewarded over time.

Jerry shares how Presilium defines true investment risk, not as temporary market declines, but as being forced to make poor financial decisions at the worst possible moment. For retirees especially, that means having a plan in place so they are not pressured to sell stocks during a downturn just to fund their lifestyle.

One key strategy Jerry discusses is building a “market cushion” using short-term bonds and cash to help support several year ...