History Says a Bear Market Is Coming Eventually. Here's the 1 Move the Smartest Investors Are Making Right Now.
The smartest investors may be preparing in a way most investors would not expect.
Economic expansions and bull markets do not persist indefinitely, according to historical data from the National Bureau of Economic Research. In the United States, from 1945 to 2020, these periods averaged about 64 months in length. The ongoing expansion, which commenced in May 2020, has already surpassed the historical average with a duration of roughly 76 months.
A bear market is typically characterized by a substantial decline of at least 20% in a primary stock market index from its recent peak. Fidelity, a leading financial services company, indicates that U.S. equities have entered bear market conditions approximately once every six years on average throughout the past 150 years, with a median decline of around 33%.
This does not necessarily imply that a bear market is imminent, but for investors who plan to hold stocks for decades, it is prudent to anticipate significant market downturns over time. Therefore, the most advantageous strategy for investors anticipating a potential future bear market involves understanding and implementing a specific approach. For further insights, continue reading.
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