Worried About a Stock Market Crash? History Says Not So Fast.
You will live through a bear market sometime soon, but history suggests that a bull market will quickly follow.
Overview
If you are a relatively new investor, you may have never experienced a really deep and prolonged bear market. Sure, there have been some swift drops, but nothing like the pain that was meted out during the dot-com bubble or the Great Recession. This is why it is so concerning that the artificial intelligence bubble brewing today has pushed the market back to valuation levels last seen before the dot-com bubble burst. We could be in for a doozie of a downturn, but don't let that freak you out too much. Here's why.
Bull markets feel great, but stocks don't go up forever in a straight line. A jagged pattern is the norm. And, for better or worse, sometimes the jagged pattern includes some pretty dramatic downdrafts. Bear markets are the deepest of the drawdowns, and they are just as normal as bull markets. But stocks don't go down forever, either. You have to take the good (bull markets) with the bad (bear markets) if you are going to invest in stocks.
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Originally published at www.fool.com.