If a Bear Market Is Coming, History Says the Smartest Investors Are All Making This 1 Move Right Now
Experienced investors have learned to take advantage of market downturns by following this single rule.
Overview
When stocks drop by 20%, it generally means a bear market has arrived. And as scary as that may seem, it's a natural part of the economic cycle. In fact, over the past 150 years, U.S. stocks have dipped into bear-market territory about every three and a half years. Think of bear markets not as catastrophes, but as cooling-down periods.
The last bear market started in June 2022, so the U.S. has gone four years without one. The thing is, there's no sure way to know when the next one may occur. However, when it does arrive, history shows that the single best thing investors can do is not to rush to the exits. Here's why.
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Originally published at www.fool.com.