The 2nd worst start to the year in US market history has many investors terrified. Investor sentiment is at its lowest level in 30 years.
The unique combination of risks that caused this bear market, including 50% of the Nasdaq being cut in half, is likely to persist for the rest of the year.
But the magnitude of the declines so far is historically normal. In fact, there are several reasons to think we’re relatively close to this bear market bottom.
Barring a recession, the fundamentals of the economy and corporate earnings don’t justify the kind of crash that haunts the nightmares of investors.
There are three essential facts you need to know about how to avoid disastrous mistakes in this bear market that could torpedo your retirement dreams.