
AFL’s JoAnne Reilly
When stocks move into a bear market — defined as falling at least 20% or more from 52-week highs — they have recovered over time. As the below table of the S&P 500® Index illustrates from 1950 to present day, when the selling pressure finally hits a bottom, stocks have a strong track record of bouncing back over the next three, six and 12 months.
Source: Bespoke Investment Group.
Prepare for and weather market fluctuations
Remember to keep these tips in mind, especially now when markets are volatile:
- Stay focused on your financial goals — we’re here to help with this.
- Ensure your allocations are consistent with your longer-term risk profile and rebalance your portfolio regularly.
- Make sound investment decisions based on informed, rational reactions to news headlines.