Bear Market Investing: History Suggests Staying Invested

**Implied Volatility / Movement:**

History suggests that when stocks decline by 20%, it generally signifies the onset of a bear market, a cyclical event that has occurred approximately every three and a half years over the past 150 years. Contrary to a panicked sell-off, seasoned investors historically advocate for maintaining a consistent investment approach, which includes continuing scheduled contributions. This strategy, known as dollar-cost averaging, allows for the acquisition of assets at reduced prices, potentially amplifying gains when markets recover. Bear markets, on average, last about 289 days, or roughly nine and a half months, and can present opportunities to acquire quality assets at a discount.

Moreover, historical data indicates that a significant portion of bull market gains can occur in its early stages, often before the market's recovery is clearly recognized. Investors who remain invested through market downturns are thus positioned to benefit from these initial upward movements. While past performance is not a guarantee of future results, historical patterns offer insights into navigating future bear markets.