BLOG - Weekly Chart 02/27/2023 - Bear Markets

BLOG - Weekly Chart 02/27/2023 - Bear Markets

February 28, 2023

This week's chart is on former bear markets. We're focusing on the initial investment of $100 and where the value was at the end of a bear market, trough, or the bottom of the market. If you look at 2007-2008, if we're being conservative here, we're saying about $45.00 of the initial $100 remains and it took just about a year from the start of that bear market to get to that point.

Looking at 2022, it's actually been pretty mild up to this point. We're still sitting at about 80 to $85 of that initial $100 investment and we are just about 3/4 into maybe a little further than 3/4 into the bear market, so the reason why this is important is because there could be a further drawdown as you can see from all these different bear market examples here.

The importance of this is to take a risk first approach and make sure that we're investing for the individual and obviously trying to mitigate as much of that risk as possible.

If we can capitalize on the upside, great, but we're trying to even out these lines so they're not quite as dramatic as you're viewing here.