Investing anxiety keeping you up at night? When stock prices turn rocky, even the hardiest of investors can lose sleep over the possibility of a big market crash.
If you’re willing and able to wait for a recovery, look to a crash as your chance to buy great stocks at a discount.
If the crash doesn’t materialize, you’ll have to buy your stocks back at some point — probably at higher prices.
The biggest gains can happen during bear markets, or at least before most investors realize a recovery is underway.
Since the 1920s, investors have felt the sting of a Great Depression, turbulence in oil prices and cryptocurrency, overvalued technology stocks, terrorist attacks, a Great Recession in 2008, and a global pandemic.
If you don’t have faith in that, bear markets will be hard for you to stomach.
Even better, that 7% average includes the market’s best and worst time frames.
According to history, if you wait long enough, the growth markets will more than offset those terrible down markets.