Tuesday, April 5, 2016

Being smart with $$ - Stop worrying about bear markets

Still worrying about stocks falling? If so, you are probably trading rather than investing.  Stocks often fall hard.  But the patient have been rewarded.  Bear markets averaged 33% drops since 1946 and it took over 3 years on average from the start of the fall until you recovered your losses. (Source: Sam Stovall of S&P Global) But what's 3 years?  If you're not investing in stocks for your needs many years out, you're approaching it wrong.  Kiplingers (4/16) says money invested in stocks in 1965 has increased by 100 times!  But you would have had to patiently wait out 8 bear markets.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

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