"shows that all you really need to do is 'somehow' avoid or profit from the big draw downs to make above average returns, IMO. "
I think maybe the next bear market on the S&P500 will be influenced by funds currently invested in passive funds temporarily switching from long to short for the duration of the contraction. That will be a new dynamic as the popularity and accessibility of geared short index etfs has grown since the last bear market in 2008.
When all my traffic lights turn red I will be allocating some of my capital to a strategy of passive geared shorting of the S&P500. An etf such as BBUS. The aim being to park/grow some of my capital during the next US bear market and patiently wait for value opportunities in quality companies to eventually present themselves.
Just need to be patient in the meantime. Continue to eliminate unnecessary noise, focus 95% on value investing and keep 5% focus on tracking status of traffic lights.
