A Bear Market Is Looming: Here Is 1 Smart Move Investors Can Make That History Shows Will Pay Off
Staying invested, even in the face of a potential bear market, is generally the best move.
Overview
The one thing that is certain about the stock market is that it will have its ups and downs. While the general long-term trend for stocks has always been up, there have also always been some major bumps along the way.
That means we're eventually going to see another bear market, and there are clear indications that it could be sooner rather than later. The average bull market lasts around 2.7 years, and the current one we are in has already lasted longer than that, with it about to turn four years old in October.
Details
Meanwhile, factors that led to two of the last four bear markets are potentially in place. The Federal Reserve raising interest rates to fight inflation helped trigger the last bear market in 2022, and the Fed has already started to go down this path. At the same time, the bursting of the dot-com bubble shares similarities with the current AI boom. A couple of valuation metrics have also reached levels similar to those of the dot-com era.
Source
Originally published at www.fool.com.