My wife and I were on vacation in Tofino, in the rain forest on Vancouver Island, British Columbia, several years ago. Our host at the bed-and-breakfast supplied us with heavy-duty rain gear. He said, and I will never forget it, "There is no such thing as bad weather, there is only inappropriate clothing." With the right clothing, we were fine, thank-you-very-much. When we recently went on a self-guided walking tour of the Cotswalds (in England), we brought our rain gear to be prepared for the frequent rains which keep the countryside green. It rained, and we were fine there, too.
Rain and bad weather happen. They are normal. Without them we would have only desert. Effectively dealing with variable weather conditions means being prepared.
Downturns in the markets and economy are also normal. The economy cannot grow effectively without a business cycle, which includes both sunny periods and times of rain. A single individual can control the economy no better than the weather. And an individual has only very limited capabilities even to predict either of them.
Being prepared to weather economic storms has several components.
• In the past on average you would have had better results venturing outdoors and participating in the growth of the markets than sitting indoors or on the sidelines. Just remember to have the appropriate clothing or portfolio.
• To construct an appropriate investment portfolio, you should assume that there will be both good and bad weather, always. Diversify so that you can have a good time in the good weather and not drown in the bad weather.
• Remember that it is possible to have a long stretch of bad weather or markets. Plan for it.
• Don't try too hard to outguess the weather or the markets - it doesn't work enough of the time to justify the effort. Without planning and preparation, chances are you will occasionally get soaked.