You Can't Outrun a Bear Market, but Successful Investors Don't Have to Because They Follow This Playbook Instead

Despite the S&P 500 (^GSPC +0.08%) soaring 14% as of October 13, 2026, many investors are uneasy due to persistent inflation, high U.S. family debt levels since 2010, and a national debt exceeding $40 trillion. While a bear market, characterized by a 20% or greater decline from a recent high, is inevitable, there's no way to evade one.

However, seasoned investors are aware of strategies to sidestep detrimental errors during steep stock declines. Panic selling, driven by the perception of safeguarding what remains, appears instinctive when stock values plummet. Yet history demonstrates that panic selling can prove costly. In fact, 48% of the S&P 500's best days transpired during bear markets from 1996 to 2025, according to Hartford Funds.

This was surpassed by 28% of the best days occurring within the initial two months of a bull market, and 24% during the rest of the bull period. Missing the top 10 days, for instance, would have slashed a $10,000 S&P 500 investment to $85,490 by 2025. Escalating this trend, avoiding the 30 best days would have reduced that investment to $31,123.

While the temptation to sell during a downturn is understandable, the portfolio filled with high-conviction stocks can mitigate the risk of impulsive reactions. Conversely, a portfolio brimming with speculative positions could suffer severe losses during a market downturn, potentially triggering panic selling. Successful investors curate their portfolios with stocks they're comfortable purchasing more of if prices tumble.

The nature of these stocks varies based on individual objectives and risk tolerance. However, Warren Buffett's wisdom, as articulated in a 1996 Berkshire Hathaway shareholder letter, remains pertinent today: "If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes."