Take your time? Stocks always recover from bear markets


In the life of an investor, sometimes looking at portfolio values ​​isn’t fun – when instead of a pleasing green next to your stocks’ daily movements, there’s a constant, unsightly red. We’ve been going through one of these stretches this year and you might feel distressed, which is an all-too-human reaction to seeing investment values ​​drop.

Making matters worse, according to research on a phenomenon called loss aversion, you probably feel more pain from stock price losses than the enjoyment from a corresponding increase.

As a result, “Why didn’t I see this coming?” is a common lament during market downturns. You knew the good times couldn’t last and heard the talk about stock values ​​dropping, but you kept investing instead of cashing out. The reality, though, is that people had been predicting an imminent demise in stocks for several years only to see prices continue to advance. Think about all the gains you would have missed out on by trying to get the timing just right.

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