With the 10th anniversary of the 2008 financial crisis at hand this month, it’s important to ask if you’re ready for the next stock market crash — or even the next bear market. If it happens again, should you stay the course — or go to cash?
With the long-term mutual funds portion of your portfolio, the answer is: Stay the course.
But why? Wasn’t the 2008 financial crisis painful? Bottom line, the S&P 500 extended a drop that had already begun into a nearly 57% plunge at its trough. Only the Great Depression’s 86.2% nosedive in 1928 through mid-1932 was worse in modern times.
Still, many investors have learned that the best way to avoid hurting the long-term, diversified portion of their portfolios is to stay the course — that is, stay invested.
2008 Financial Crisis: Lessons For The Next Stock Market Crash
A key indicator: 84% of financial advisors say their investor clients, this time, are more likely to make and stick to a financial plan, according to a poll by Nationwide Advisory Solutions.
