Bear markets are where many fortunes are made. The S&P 500 has recovered from every bear market, and rose to new all-time highs, every time. The S&P 500 has dropped 10% or more, 38 times since 1950. HOWEVER, every single time, it continued to make new all-time highs! Long-term wealth is built on red days.
We don't know what the market will do tomorrow, this week, or next week. But we know that businesses which create value will increase in value, over time. Buy good companies and hold them for the long-term!
Market drops & volatility are opportunities for long term investors, not risks.
The Stock Market crashed:
- -34% in 2020
- -57% in 2008
- -49% in 2000
- -29% in 1987
BUT, Since 1926, the stock market increased 11% each year on average, or 1,325,558% over 96 years!
Investing may be risky in the short term, but NOT investing is more risky in the long term.
Leave a Reply