By our count, the bear market of 2022 is the latest of more than 20 market crises that came and went since 1957.
The bear market of 2022 began June 13, when the Standard & Poor’s 500 index closed more than -20% lower than its all-time closing high on January 3, 2022.
No one knows how long the bear market will last. The average bear market in modern history lasts about 11 months. On the other hand, having come off its low of June 16, this bear market might be over already. Strong economic fundamentals belie fears of a sharp downturn.
Amid recent uncertainty, remember that the U.S. stock market rose despite the onslaught of crises that have plagued modern history.
Is the inflation crisis of 2022, which comes on the heels of the Ukraine crisis, somehow how different from the Cuban missile crisis, 9/11, or the pandemic?
Selling stocks in a crisis is very likely to result in missing the recovery. While recent events are testing investor resolve, history indicates that the best strategy for building wealth is to stay put for the long run, even if it’s hard to do.