Should You Still Invest if a Bear Market Is Coming? History Offers a Clear Answer.
Most people think the key to successful investing is picking the right stocks and aiming for maximum returns. In reality, it’s what investors do during falling markets, not rising ones, that will likely matter the most in determining what kind of returns you can achieve.
Many people fall into a familiar pattern when stock prices are dropping. They watch the price go down for a little while, decide they can’t take it anymore, and sell. They want to wait for when “things get better” before buying back in.
Unfortunately, that behavior does a lot of damage. What these folks end up doing is locking in losses while missing out on the subsequent recovery. And it’s a big reason why investor returns consistently lag market returns over time.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.