6 lessons from stock market history that may help

 

 

Many investors are asking…

-how long will the bear market last?
-what if interest rates keep rising?
-what happens if there’s a recession?
-can stocks bounce back long term?
-if I sell now, when do I buy again?

Here are 6 lessons from stock market history that may help…

— Jon Erlichman (@JonErlichman) October 8, 2022

2: Bear markets are worse in recessions.

Since 1928, there have been at least 25 bear markets and 14 of them were during a recession.

On average, those bear markets saw steeper declines and they tended to last longer.

One reason? A bigger drop in profits. pic.twitter.com/7H0FrTDOfi

— Jon Erlichman (@JonErlichman) October 8, 2022

 

4: Stocks typically rally after inflation peaks.

Cycles dating back to 1929 show at least 11 out of 15 examples where stocks rose in the year that followed inflation’s peak — that’s nearly 75% of the time. The average stock market advance in those cycles was 11.5%. pic.twitter.com/DVVYz0OCk5

— Jon Erlichman (@JonErlichman) October 8, 2022

6: It’s hard to time the market.

After the worst September in two decades, stocks surged to start October.

Missing rallies can hurt.

Since 1930, the S&P 500 has risen +17,000%. But if you missed the 10 best days in each decade since then, the return shrinks to less than 30%. pic.twitter.com/ZlaeBLV9gG

— Jon Erlichman (@JonErlichman) October 8, 2022