Bear Markets: Why sticking to the program produces winners

August 03, 2022 | Jeremy Goldfarb


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The Program (not the movie)

 

I looked at 2 recent articles for today's post. The first came on July 26th from RBC GAM (click here), and discussed how markets have bounced back from  20% drops over the past 20 years. It also looked at a 4th (almost) bear market in 2018. 

 

The second article was also courtesy of GAM (click here), and looks at BEAR MARKET EVENTS (a drop of 20% or more) for the SP500 over the past 60 years. 

 

Both articles are helpful to relate to the current market conditions, given we reached bear market territory for the SP500, earlier this year. I urge you to draw your own conclusions, however one point occurred to me while looking through this information.  The average drop in a bear market over the past 60 years has been 35.6%. The results following said bear markets, are as follows: 

 

 

Invest during times of distress, in the same fashion you would during times of prosperity. Stay within your risk tolerances, and know your objectives.

 

If you stick to  YOUR PROGRAM,  and don't second guess, you will continue to build wealth into the future. 

 

I urge you to speak with us, or your personal wealth advisor to learn more.