Portfolio Diversification Strategies to Prepare for Bear Markets
- 1Looking at 13 bear market cases over the past 100 years, the market declines on an average cycle of 7 to 8 years.
- 2A Fidelity analysis shows that dividends have accounted for 40% of the S&P 500 total return.
- 3In the 1970s, three-quarters of the total return came from dividends.
So what's the key point?
Market downturns have occurred on an average cycle of 7 to 8 years. Since dividends have made up a large portion of returns, preparation using them is necessary.
Source The Motley Fool · View original ↗
Nothing hidden: past picks and how they did against the S&P 500.