The myth of the market was exposed: separating the truth from imagination

• Bear markets are not enjoyable, but historically, they were great purchase opportunities.

• To avoid the loss of fast highlands that tend to follow the bear markets, the best strategy is to stay in investment.

• 10 shares we love better than the S&P 500 ›

There may not be a pair of the most terrifying words that can be seen in the address of a financial news from the “bear market”.

A Bear marketIt is usually defined as a 20 % decrease of the highest level in the previous market index, it can be annoyed, especially when the sale occurs quickly. You just have to remember news stories in April when you sent President Donald Trump’s global definition ads to understand the fear that the bear market can bring.

However, it is also a healthy and necessary part of the market cycles, and the understanding of the bear markets can help you move them wisely – or even use it for you. Here are four facts about the bear markets that each investor should know.

Imagine that you are at the beginning of the legendary compound riding with your car slowly and higher. Then, the peak crosses and decrease again quickly to pick up breathtaking. This can be often what the stock market courses feel because they rotate between them Taurus and bear markets.

Such a fixed ascension, the bull market can last for a period of time. Between 1949 and 2024, the average bull market in S & P 500 (Snpindex: ^Gspc) It lasted 67 months, or a little more than five and a half years. On the other hand, the bear markets lasted on average only 12 months, and only 33 days. Bear markets may not be enjoyable, but fortunately, they are usually relatively more than that.

Since the bull markets usually last longer than the bear markets, they are pushing to stay invested. Yes, the decreases you will see in the value of your wallet while declining are encouraged. The average decrease through the S&P 500 Bear market was 34 %, and the 2008 financial crisis was especially severe with a 59 % decrease, according to Charles Shawab.

But if the course remains, get your shares, and rode it to the next emerging market, you would have enjoyed health gains. Since 1949, the average bull market has witnessed 265 %. Of course, there is no guarantee that will follow the future results historical patterns, but investors can still take lessons from the stock market behavior for long periods. Investors should remain optimistic.

One of the ways they shoot investors will shoot themselves in the foot by trying to expect what the economy or the stock market may do in the short term. Most people fail to understand how quickly things change things in Wall Street, and the market can turn for a long time before you realize what happened.