Warren Buffett Says Bear Markets Are an "Investor's Best Friend." Decades of History Prove He's 100% Right.
If a bear market is coming, history has good news for investors.
Overview
The September effect appears to be in full swing, as major market indexes have struggled during this historically slow month.
The S&P 500 (SNPINDEX: ^GSPC), Dow Jones Industrial Average (DJINDICES: ^DJI), and Nasdaq Composite (NASDAQINDEX: ^IXIC) have fallen by 1%, 3%, and 0.3%, respectively, over the last two weeks, as of this writing. A rate hike from the Federal Reserve, stubbornly high oil prices, and AI concerns have put pressure on stocks, and a rattled bond market has renewed recession fears.
Details
While all of these headwinds don't necessarily mean a bear market is around the corner, it never hurts to prepare. And according to Warren Buffett, an upcoming downturn could be a lucrative opportunity for smart investors.
Source
Originally published at www.fool.com.