The Truth About Bear Markets

We can’t control the market, and we can’t control the overall timing with which we invest.

Banker on FIRE takes us through how a hypothetical investor with a nice round  six-figure sum would have endured the previous trying times, and gives  us all a little courage for the bear market.

 The Truth About Bear Markets

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If you are at the very beginning of your investing journey, a bear market is nothing short of a godsend.

You’ve got pretty much nothing to lose and everything to gain as you snap up stocks at deeply discounted prices.

If you happen to be in that camp, consider yourself lucky, because you’re about to put your equities portfolio on steroids. But what about the rest of us?

The vast majority of stock market investors aren’t so lucky as to start investing right at the beginning of a bear market.

Our first journey starts in 2008. That year saw one of the sharpest stock market declines on record.

Trip Down Memory Lane

Between January and December, the financial crisis nearly toppled the  global economy, and the S&P 500 registered a total decline of 37%.

Trip Down Memory Lane

As a result, someone starting with a $100,000 portfolio ended the year with just $67,000 to their name – and that’s after they contributed $6,000 in new money.

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