Having a “bear” of a Time

It’s true that past performance is no guarantee of future results, but there are previous trends that are important to recognize. A bear market, or a prolonged drop in investment prices (usually by 20%), has historically been followed by a substantial market return in the following year. These markets can feel grizzly while we’re in the middle of them, but it’s important to be in the market to experience any returns when the market rebounds. Check out the data that illustrates this point in this article*.

*While we recognize this article as a clear and concise perspective on the current market, the sharing of this piece should not be considered an endorsement of PGIM Investments.