How To Stay Hopeful Through The Bear Market

After weeks of staving off the same fate as its Nasdaq compatriot, the S&P 500 (NYSEARCA: VOO) finally succumbed to the unerring pressure and plunged into a definitive bear market on Monday. 

A decline of more than 20% since the index hit all-time highs in January has sent fear rippling through the markets, but despite the overwhelming feeling of dread some of you may be feeling, we're here to tell you that all is far from lost.

There's opportunity even in the darkest of times.

A case for hope...

An award-winning economist I certainly ain't, but it doesn't take a degree in economics to understand that fears around inflation, ongoing war in Eastern Europe, and the ever-lingering specter of COVID have all played their part in dragging down the market.

What I can tell you though is that, even though the past few years have undoubtedly been unprecedented, this kind of market activity is far from abnormal. As famed investor Peter Lynch once stated, "about once every two years the market falls 10%," before following with, "and every six years, the market's going to have a 25% decline." Lynch made these comments in 1994, and they still ring true today.

The last couple of days have been a bloodbath for investors, we're not here to try and tell you otherwise. It's true that bear markets can often precede a recession, and that's not something any of us are hoping for. But, if ever there was a time to truly take stock of your investing horizon, it's now.

Massive winners are now down double digits. Do you still believe in the companies you've invested in? If so, then you must believe that they'll bounce back. 

Is your portfolio diverse enough? If not, why not look at some low-risk, instant diversification plays like Markel or Berkshire Hathaway?

I'm not saying it's going to be easy -- far from it. But the night is always darkest before the dawn, and with fear and panic setting in across the markets, generational wealth is about to be created for some who stay the course and believe in their horizon.

We're in this for the long haul, and we hope you're right there with us.