Portfolio manager Ben Carlson reviews various past bear markets and their performance in the years following. He acknowledges the discomfort and pessimism that usually come with bear markets: “It doesn’t take a genius to point out the bad stuff today. Being bearish is easy right now.”
He also argues that being bullish for the long term is supported by history, even if you may still be bearish in the short term: “The stock market doesn’t fall 25-30% or very often and when it has in the past it’s provided solid returns when your time horizon is measured in years as opposed to days or months.”
He reminds us that very single bear market in the history of U.S. stocks has resolved to new all-time highs eventually, and that buying stocks when there is blood in the streets is generally a wonderful idea historically speaking.