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Old 01-31-2022, 08:19 AM
Boffin Boffin is offline
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Default Bear Markets

Quote:
Originally Posted by CoachKandSportsguy View Post
Those thinking of moving some equity in your portfolio to cash would not be wrong, with the option of re-investment later. . My 401K has been in zero equities since last August, waiting for about 3000 on the SP500. Don't fall for the stocks always go up or always return 8% , including about 2-3% dividends, giving about 6% price return, from any point in time. your time is limited, you do not have income to make up for shortfalls, unless you have a federal government pension. . .

The graph below is the simplest valuation metric of equity valuation to sales of the S&P 500, best would be enterprise value to sales but sometime later. With a 30% drop from here, at 6% price return, it takes 6 years to get back to the same price. . So selling high at these levels, may save you 6 years of retirement savings gains. .

However, I am just some rando fictishus poster who has ever texted with one of the nice people on this board, so make your decision and own it. . .

trading guy
The average length of a bear market is 289 days, or about 9.6 months. That’s significantly shorter than the average length of a bull market, which is 991 days or 2.7 years.

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