Attempting to time the market during a bear market is a mistake to avoid
- 1The S&P 500 has experienced 27 bear markets over the past several years.
- 2A bear market occurs when a major index falls more than 20% from its recent high.
- 3Investors suffer significant hits to returns if they miss the best days while trying to avoid the worst of the market.
So what's the key point?
A bear market can occur when stock prices fall more than 20% from their peak. Trying to predict when the market will hit bottom can lead to missing good days and significantly reducing returns.
Source The Motley Fool +1 · View original ↗
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