The stock market has been in a bear market, meaning the S&P 500 has fallen by at least 20% from its high.
If you had begun investing in stocks at the January 3 high and now have to sell because you need the cash, you would be in a world of hurt.
Fortunately, most investors aren't in this position and have a much longer time horizon.
And hopefully, most investors understand these intermittent sell-offs are the price you pay for long-term riches.
The 152-year record of U.S. market returns is littered with bear markets.
Indeed, the most important pattern in history's bear markets is that the market has always come out on top.Sometimes, these recoveries happen quickly.Sometimes, they take a couple of years.
Let's be honest; it can be challenging to think about a brighter future for stock prices when facing so many challenges today.
But it may help to remember that all the historical stock market gains we've discussed have occurred during periods that often included what once seemed like insurmountable problems.
The point of this discussion is to remind you that big sell-offs in the face of unprecedented challenges are expected.
And it's just as expected for the market to come out on top.
At this point, we don't know how severe this current market decline will be, how long it will last, or how long it will take to recover.
But if history is any guide, investors should stay the course and not panic.
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