History Says the Investors Who Stay the Course During Bear Markets Have Always Come Out Ahead. Here's the Proof.
The market never telegraphs when its best and worst days are coming -- and managing your portfolio as if it does usually ends up doing more harm than good.
Overview
Bear markets: Investors don't like them, but understandably so. Not only do they last roughly a (miserable) year, on average, but numbers from Stifel suggest that since 1932, the average bear market has dragged the S&P 500 (SNPINDEX: ^GSPC) down 35% from peak to trough. Yikes.
Yet experienced investors know they're going to happen sooner or later -- once about every five years (again, on average), though certainly not with anywhere near that predictable a cadence. Regardless, it's tempting to try to simply sidestep bear markets by being out of the market altogether when they happen.
Details
For the vast majority of investors, though, such a strategy may end up doing more harm than good. Here's why.
Source
Originally published at www.fool.com.
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