Investors should stay invested through bear markets and use dollar-cost averaging for consistent returns.
From Nasdaq: 2025-05-31 06:55:00
- Dollar-cost averaging is a strategy where investors make routine investments over time, even when stock prices fluctuate.
- Bear markets, defined by a 20% market decline, can evoke fear and stress in investors, leading some to stop buying or even sell.
- Historical data shows that staying invested during bear markets and dollar-cost averaging can limit losses and aid in portfolio recovery.
- Timing the market is nearly impossible, with dollar-cost averaging proving to be a more consistent and successful strategy over time.
- The Motley Fool Stock Advisor team identified 10 stocks to buy now, with past recommendations having produced significant returns compared to the S&P 500.
Read more at Nasdaq: Be Greedy When Others Are Fearful? History Says This Is What Happens When You Keep Investing Through a Bear Market.