Many investors are asking…
— Jon Erlichman (@JonErlichman) October 8, 2022
-how long will the bear market last?
-what if interest rates keep rising?
-what happens if there’s a recession?
-can stocks bounce back long term?
-if I sell now, when do I buy again?
Here are 6 lessons from stock market history that may help…
2: Bear markets are worse in recessions.
— Jon Erlichman (@JonErlichman) October 8, 2022
Since 1928, there have been at least 25 bear markets and 14 of them were during a recession.
On average, those bear markets saw steeper declines and they tended to last longer.
One reason? A bigger drop in profits. pic.twitter.com/7H0FrTDOfi
4: Stocks typically rally after inflation peaks.
Cycles dating back to 1929 show at least 11 out of 15 examples where stocks rose in the year that followed inflation’s peak — that’s nearly 75% of the time. The average stock market advance in those cycles was 11.5%. pic.twitter.com/DVVYz0OCk5
— Jon Erlichman (@JonErlichman) October 8, 2022
6: It’s hard to time the market.
— Jon Erlichman (@JonErlichman) October 8, 2022
After the worst September in two decades, stocks surged to start October.
Missing rallies can hurt.
Since 1930, the S&P 500 has risen +17,000%. But if you missed the 10 best days in each decade since then, the return shrinks to less than 30%. pic.twitter.com/ZlaeBLV9gG
