Prediction: This Bear Market Will Test Your Resolve In (At Least) 3 Ways
Brace yourself, because your resolve to hold onto your stocks could get tested big time, and soon. With the S&P 500 Index dipping as low as 23% within the past couple of months, we've hit the ballpark of bear market territory. The index currently hovers around a 12% drop year to date, but there could be more pain on the horizon.
If you sell your shares, you won't get the advantage of the market's eventual recovery, so you'll need to buckle down and prepare yourself to hold out. Let's learn about three of the most common ways that bear markets create the very powerful temptation to sell so that you can resist the temptation when it calls.
The most visible way that the bear market is likely to test investors' resolve is by demolishing the stocks of companies that were not too long ago put forward as high-flying success stories. Take Moderna (NASDAQ: MRNA), for example. Its shares are down by 53.6% over the last 12 months, despite a powerful return of more than 1,430% over the last three years.
Source Fool.com