Image Source: Motley Fool |
The Nasdaq Composite index is down more than 25%, firmly establishing bear market territory. Most investors will find themselves in this difficult situation. It can, however, be an area of opportunity for investors buying companies with a three-year or longer time horizon. According to historical bear market data, the downcycle lasts, on average, roughly ten months. The study also revealed that it took an average of 26 months to regain the losses. Long-term investors should feel confident that investing in the market at any moment will eventually result in a favorable return if they follow those general guidelines. When it comes to individual stocks, this idea also holds true, at least if you pick the right stocks, to begin with.
|