A History of U.S. Bear Markets and Their Recoveries
For investors who sold at the bottom of these markets, the lower stock prices had a detrimental effect. Those who stayed in long enough to experience a subsequent recovery were better off.
Those who flee to cash during bear markets should keep in mind the potential cost of missing the early stages of a market recovery, which historically have provided the largest percentage of returns per time invested.
I had a friend that in 2008 switched his entire 401K from mutual funds to a guaranteed APY fund - locked in 10s of thousands in losses.
An excellent set of key takeaways! So important to focus on recovery even though it is most likely fear that is the first port of call in a bear market.
“Far More Money Has Been Lost By Investors Preparing For Corrections, Or Trying To Anticipate Corrections, Than Has Been Lost In Corrections Themselves.” – Peter Lynch