A “bear market” is when stocks see a 20% decline or more from a recent high. Many 401(k) investors have seen several bear markets, the worst one being The Great Recession that lasted 17 months from October of 2007 to March of 2009 when the stock market fell 57%. It took 49 months for investors who left their money in the market to recover their losses.
Since World War II, bear markets have lasted 13 months on average and stock markets tend to lose 30% of their value. During those conditions, it usually takes stocks an average of 22 months to recover. BUT investors who left their money invested during these bear markets tended to recover value lost.
What’s it take to be a good fisherman? ... patience!
Investment advisory services offered through intellicents investment solutions, inc., a federal covered investment adviser.