Most Investors Fear Bear Markets. My 7-Year Track Record Shows They Should Welcome Them.
It's better to buy assets when they're on sale.
Bear markets, characterized by a 20% or greater decline in a broad market index sustained for at least two months, present a unique opportunity for investors, according to a personal account spanning nearly seven years of consistent investment. Bitcoin (CRYPTO: BTC) serves as an illustrative example, witnessing its price plummet from its all-time high near $126,080 at the onset of a bull market to a bear market trough near $58,556.
This coin has also experienced bear markets in prior years. The author purchased Bitcoin throughout these downturns, demonstrating a commitment to buying during market downturns. Furthermore, the author invested in the SPDR S&P 500 ETF Trust (NYSEMKT: SPY), an exchange-traded fund tracking the S&P 500, during the stock market's bear market in 2022.
This long-term approach, initiated in late 2019 and early 2020, has yielded returns that convince the author to welcome bear markets rather than fear them.
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