Long-term investors may have to wait a longtime for the next market peak
We talk to many investors that are confident they can stick with their portfolio as the
current bear market evolves. It is great to be optimistic, but investors must understand
that waiting for new market highs can take a long time.
There are many studies that measure the duration and size of bull and bear markets.
However, not many analysts want to measure the distance between market peaks because
it can be very discouraging.
Let's say you invested at the very peak of an equity bull market. How long would it take for
the market to return to that peak and go higher?
This is not a trivial question. Most adults today only recall the 1980-2020 experience of
falling inflation and low interest rates. In other periods of US market history, the time to
make new market highs has exceeded 15 years.
Robert Lloyd, CFA®
Chief Investment Officer
Lloyds Intrepid Wealth Management
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