Ira Hellman, Prudential
Key Takeaways
• Don’t let emotions rule your decisions.
• Stay invested (and diversified) for the eventual rebounds.
• A financial professional can put the headlines in perspective.
The coronavirus-infected stock market has left investors everywhere feeling anxious and uncertain. Here are seven things to consider:
1. Bulls are usually stronger than bears
Stock markets run in cycles: Bear markets (20%+ price drops over at least two months) become bull markets (20%+ gains), and the cycle repeats. The reasons range from general corporate health to geopolitical drama to, yes, recessions caused by pandemics. But historically, the upturns have been much stronger and lasted much longer than the downturns.
This chart shows the difference since 1946 — and why it’s important to stay calm and stay invested. In fact, a bear market could mean an opportunity to invest in high-quality companies at low prices.
Read more here.
