History Says This 1 Bear Market Move Is the Costliest Mistake Investors Can Make
During a stock market sell-off, selling stocks is often the worst thing you can do.
Overview
The past few years have been good for stock market investors. The S&P 500 index (SNPINDEX: ^GSPC) has gained about 72% in the past five years. The tech-heavy Nasdaq-100 index has done even better, up about 93% in that time.
But good times in the stock market don't last forever. Stock market corrections (share price declines of 10% or more) or bear markets (declines of 20% or more) are inevitable. According to Fidelity research, over the past 150 years, U.S. stocks have entered a bear market about every six years on average.
Details
Bear markets can be scary. When stock prices are plummeting, it might seem as if the world is on fire, everyone is panicking, and we're all going to lose money forever. Some investors might be tempted to sell stocks during a bear market or stop investing. But that's a mistake.
Source
Originally published at www.fool.com.