But had you missed just the five best trading days during those 40 years, it would only have grown to roughly $676,000. That money would have grown to nearly $1.1 million by March 31, 2021, according to Fidelity Management & Research. Say you’d invested $10,000 at the start of 1981 in the S&P 500. Concentrating on things you can control and implementing proven strategies will pay off over time.” “During bull markets people tend to think the good times will never end and during bear markets they think that things will never be good again. It’s about time in the market,” said Taylor Wilson, a certified financial planner and president of Greenstone Wealth Management in Forest City, Iowa. When it comes to success in investing, “It’s not about timing the market. If you’re a long-term investor – which includes those in their 60s and early 70s who may be in retirement for 20 or more years – don’t expect to outwit the current downward trends. Retiring into a bear market: What to do, what to avoid But doing so will just lock in your losses. You’ll tell yourself you will move the money back into stocks when things improve. There may be times when you are tempted to sell your equity investments and move the proceeds into cash or a money market fund. While it may be a bumpy road ahead, here are some ways to mitigate the potential damage to your long-term nest egg.īearish markets can be a bear on your psyche. “If you are planning to buy stocks at this point, you are going to need to be patient and hold those positions for a much longer timeframe than many people are used to – potentially two to three years, in some cases.” “Markets are likely to be volatile – both up and down – over the next six to 12 months as the Federal Reserve continues to raise interest rates in their fight against inflation,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. The S&P US aggregate bond index, meanwhile, is down about 14%.Īnd investors may see a lot more churn over the next year. And a steep drop in the British pound coupled with rising UK debt costs is causing concern.Īfter getting clobbered in the first half of 2022, then regaining some lost ground, stocks are once again deep in the red for the year, with the S&P 500 down more than 20% year to date. Interest rates are rising quickly in the US and Europe amid government efforts to tamp down rampant inflation. And given current circumstances, it’s fair to assume the markets will remain volatile for awhile. Stocks and bonds are trading in bear territory. Editor’s Note: This is an updated version of a story that originally ran on August 29, 2022.
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