From Yahoo Finance · · 1m 40s
Bear market is coming. Here's what smart investors do
History shows the best move when a downturn hits is to stay invested, not panic sell.
In brief
History shows the best move when a downturn hits is to stay invested, not panic sell. Staying invested through bear markets beats trying to time the market, even when recessions seem certain. Originally reported by Yahoo Finance.
Bull run is ending soon
The S&P 500, Nasdaq, and Dow have hit record highs in recent years. But strong bull runs always end, and a bear market is coming.
Experts can't predict timing
In 2023, Deutsche Bank economists predicted a near 100% chance of recession within 12 months. The S&P 500 then surged 82% and the Nasdaq nearly doubled.
“"[a]voiding a hard landing would be historically unprecedented."”
Pulling out is riskier
If you'd sold stocks in 2023 fearing recession, you'd have missed substantial gains. Nobody can predict short-term market moves, making market timing dangerous.
Stay invested for decades
The single best move is to buy quality stocks and hold them long-term. History proves that with enough time, quality stocks are nearly unstoppable.
Bear markets happen regularly
Since 1929, the S&P 500 has experienced 22 bear markets, averaging a 20% decline every four years. The worst ones have wiped out 49% to 77% of value.
Recovery always comes
Since the dot-com bubble popped in March 2000, the S&P 500 has earned total returns of over 714%, despite three historic crashes in between.
Average bear lasts 340 days
The typical bear market lasts about 340 days with an average decline of 37%. Even a historic downturn's long-term gains will likely outweigh the losses.
Long-term wealth wins
Nobody knows what happens in 2026 or 2027. But investors who buy quality stocks and hold for decades will build life-changing wealth.
What to remember
Staying invested through bear markets beats trying to time the market, even when recessions seem certain.
