It's no secret that this year hasn't gone as many had expected. Following one of the least volatile years in recent memory (2021), all three major U.S. stock indexes have plummeted into a bear market in 2022 with peak declines of at least 20%. The growth stock-focused Nasdaq Composite (NASDAQINDEX: ^IXIC) has fared the worst, with a peak-to-trough decline of 38%, relative to its November 2021 all-time high.

Bear markets are known for testing investors' emotions and their resolve to stick around. But they're also, historically, short-term events. More importantly, the losses associated with every bear market for the major indexes (including the Nasdaq Composite) have eventually been wiped away by a bull market rally. This makes every sizable dip in the broader market a buying opportunity for patient investors.

Image source: Getty Images.

Continue reading

Source Fool.com