Most Investors Fear Bear Markets. My 7-Year Track Record Shows They Should Welcome Them.
Key PointsBear markets are rarely cheerful times for investors.
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.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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