The Best Way To Survive A Bear Market? Some Say, “Do Nothing”

S&P 500

3,752.75

+86.97(+2.37%)

 

Dow 30

31,082.56

+748.97(+2.47%)

 

Nasdaq

10,859.72

+244.87(+2.31%)

 

Russell 2000

1,742.24

+37.85(+2.22%)

 

Crude Oil

85.14

+0.63(+0.75%)

 

Gold

1,662.50

+25.70(+1.57%)

 

Silver

19.40

+0.71(+3.80%)

 

EUR/USD

0.9862

+0.0075(+0.77%)

 

10-Yr Bond

4.2130

-0.0130(-0.31%)

 

GBP/USD

1.1302

+0.0067(+0.60%)

 

USD/JPY

147.6300

-2.4600(-1.64%)

 

BTC-USD

19,199.26

+58.46(+0.31%)

 

CMC Crypto 200

435.25

+3.49(+0.81%)

 

FTSE 100

6,969.73

+25.82(+0.37%)

 

Nikkei 225

26,890.58

-116.38(-0.43%)

 

Melbourne, Australia –News Direct– Caleb & Brown

This educational guide exploring How To Protect Crypto Assets in a Bear Market was created in conjunction with Caleb & Brown. Caleb & Brown is the world’s leading cryptocurrency brokerage. Learn more here.

Between 2007 and 2009, the SPDR S&P 500 ETF (NYSEARCA: SPY) declined by 56.8% — the greatest price fall in the exchange-traded fund’s (ETF) history.

Few could prepare for the psychological toll of that kind of drop. At the time, many had been informed that index funds and ETFs were safe bets. Undoubtedly, professionals would have informed investors that the S&P 500 had survived two world wars and presidential assassinations, and that the 2008 crash, in due time, would be just another addition to that list.

Without help from professionals, it takes substantial willpower and courage to stop emotions from taking over during tough times. However, it is the decisions you make at these pivotal moments that could define the trajectory of your wealth. History tells the story in vivid detail: Since the SPY’s apocalyptic decline between 2007 and 2009, the S&P 500 has increased by more than 450%.

In a world which celebrates quick fortunes, it takes a special kind of person to appreciate the value of time as a compounder of wealth. For business magnate Warren Buffett, times of crisis represent buying opportunities. In a 1997 letter to shareholders, Buffett wrote, “Smile when you read a headline that says: ‘Investors lose as market falls.’ Edit it in your mind to, ‘Disinvestors lose as market falls — but investors gain.’”

Investors gain by getting bargains and avoiding the panic sell. Here’s how to do the same.

Average Wins Versus Losses In Bull And Bear Markets

The stock market’s history and the figures surrounding bull and bear markets support the argument that time is a great investing tool. By widening time horizons, traders and investors can avoid panic selling in times of crisis and maintain low-cost positions in anticipation of the next bull market.

Here are some figures to support this idea:

According to Hartford Funds, stocks lose 36% on average in bear markets and gain 110% on average in bull markets.

There have been 26 bear markets – as defined by a drop of over 20% – in the S&P 500 Index since 1928, and 27 bull markets. On average, bull market gains far outweigh bear market losses.

The average length of a bear market is 289 days (0.8 years), while the average length of a bull market is 991 days (2.7 years).

In 98 years of market history, stocks have been on the rise 78% of the time.

The image above depicts the S&P 500 ETF’s price trajectory since inception. Picture from TradingView.

The figures above are in line with the idea of an ever-growing economy with occasional drops — corrections or recessions — ultimately fueling future growth. This is reflected in the cryptocurrency market, as well. Holding Bitcoin (BTC) and Ethereum (ETH) over any five-year span has always resulted in financial gain.

Avoiding The Panic Sell?

In his book “The Psychology of Money,” Morgan Housel says, “A genius who loses control of their emotions can be a financial disaster. The opposite is also true. Ordinary folks with no financial education can be wealthy if they have a handful of behavioral skills that have nothing to do with formal measures of intelligence.”

One of the greatest behavioral skills the long-term investor can develop is the ability to do nothing in times of crisis. While seemingly counterintuitive, the figures above, and the greatest value investor of our time, tell us this is sound advice. Acting rationally on this information, however, can be difficult when emotions are tied to investors’ money. Objectivity, patience and calm are key.

For Caleb & Brown, the world’s leading cryptocurrency brokerage, providing investors with education and professional guidance is a fundamental business value. Unlike exchanges and other brokerages that just provide a platform to execute trades, Caleb & Brown offers personalized service, and is available 24/7 to help clients better understand and navigate the crypto markets through bearish conditions and bull runs.

When emotions start to take control of the wheel, it never hurts to have a professional who’s just a phone call away by your side. Make sure you’ve got the guidance you require to help you avoid the panic sell.

Click here to learn more about Caleb & Brown.

Interested in learning more about the similarities and differences between crypto winters and bear markets? Check out the previous article in this series here.

We help our clients buy, sell, swap, and safely store cryptocurrencies, with a 24/7 personal broker service.Our clients can reach their personal broker on the phone and email at any time.Our clients range from beginners needing assistance to buy their first cryptocurrency, to seasoned investors needing a professional service to make high value, complex trades.We put personalised service, education, and consumer protection at the heart of everything we do.We were founded back in 2016 and we now have over 21,000 clients in more than 100 countries, serviced by 76 staff based in our offices in Melbourne, Sydney and London.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Contact Details

Chris Nedelkos

chris@calebandbrown.com

Company Website

https://calebandbrown.com/

View source version on newsdirect.com: https://newsdirect.com/news/the-best-way-to-survive-a-bear-market-some-say-do-nothing-285506238

Advertisement

Reuters

Walmart doubles down on Africa despite a decade of frustration

In 2011, U.S. retail giant Walmart Inc made a bet on Africa, buying a majority stake in South African retailer Massmart in what many investors saw as a step toward dominating the continent’s vast untapped market. More than a decade later, Massmart’s balance sheet is burdened with debt, its books are deep in losses and it’s drowning in lease obligations on commercial properties. From its late entry into e-commerce to an ill-fated foray into fresh foods, Walmart’s African journey over the last decade has been a string of missteps, compounded by economic headwinds and the COVID-19 pandemic.

The Wall Street Journal

Verizon’s Profit Falls 23% as Price Increases Slow Growth

Verizon Communications Inc. on Friday unveiled a new cost-cutting plan after higher corporate costs and rising interest rates ate into its third-quarter profit. The largest U.S. cellphone carrier in terms of subscribers reported a net gain of 8,000 phone connections under postpaid billing plans during the September quarter, a sign that recent rate increases had prompted many of its most reliable customers to leave the service. Verizon executives nevertheless said that the price increases for certain cellphone plans were paying off, noting that overall wireless service revenue grew over the third quarter.

Benzinga

American Airlines Plans To Do Away With First-Class Seats On International Flights

In its Q3 earnings conference call, American Airlines Group Inc (NASDAQ: AAL) Chief Commercial Officer Vasu Raja provided some detail about replacing its first-class international flight seats with new business-class suites, announced last month. “And frankly, by removing [first-class seats], we can provide more business-class seats, which is what our customers most want or are most willing to pay for.” International flights from Delta Air Lines Inc (NYSE: DAL) and United Airlines Holdings Inc (

CNW Group

Cogeco wins the PROSPÈRE Award for Employer Builder at the first Gala Prospérité Québec

Cogeco Inc (TSX: CGO) is proud to announce that it has won the PROSPÈRE award in the Employer Builder category at the first edition of the Gala Prospérité Québec (in French only) organized by the Conseil du patronat du Québec (CPQ). This award is given to an employer who has built and maintained a culture based on values and excellence in the management of its human resources.

Zacks

Add These 4 Top-Ranked Liquid Stocks For Healthy Gains

Here are four top-ranked liquid stocks, Oxford Industries (OXM), Aerie Pharmaceuticals (AERI), Perion Network (PERI), and Pure Storage (PSTG), which investors can add to their portfolio for returns.

Yahoo Finance

Serena Williams on being a VC: ‘Sometimes winning looks different’

Serena Williams, tennis legend and VC, took the stage with business partner Alison Rapaport Stillman this week at TechCrunch Disrupt, noting that winning looks different in VC-land than it does on the tennis court.

American City Business Journals

Verizon shares plunge as Q3 profit decline shows cell subscribers are looking elsewhere

Verizon Communications Inc. shares sunk to an 11-year low Friday after the cell phone carrier reported a 23% drop in third-quarter profits as wireless subscriber growth slowed. The New York-based company also said it’s launching a new cost-savings program to improve operating efficiencies and mitigate inflation impacts. Verizon (NYSE: VZ) said third-quarter net income fell 23% to $5 billion, or $1.17 per share, from $6.6 billion, or $1.55 per share, a year ago.

Zacks

Genuine Parts (GPC) Q3 Earnings Beat Estimates, Rise Y/Y

Genuine Parts (GPC) delivers an earnings beat in third-quarter 2022, maintaining its beat trend. Both top and bottom lines rise year over year. The company also raises its 2022 projections.

Leave A Reply

Your email address will not be published.