BEAR MARKETS ARE PAINFUL BUT MARKETS RISE OVER TIME

     A "Bear Market" is defined as a decline of 20 percent from recent highs. By the time you read this, we may be in a bear market or we may have recovered from a mere correction that began in February. For people seeking a better return on their savings than what the banks offer, the ups and downs of the stock market are a natural part of the investing process. It comes with the territory in return for the long-term growth rate that defines owning a piece of American industry.
     Bear markets can be painful, but overall markets are generally positive over time. The last 90 years of market history have been defined as bear markets for about 20 of those years. In other words, stocks have been on the rise 77 percent of the time.

     From 1926 through 2019, the average annual stock market return was 10.2 percent.
For the five years ending 2019, the Dow Jones Industrial Average (DJIA) returned 12.2 percent annually (accounting for dividends). Over that same time, the yield on CDs - after factoring in taxes and inflation - lost purchasing power.
One of the reasons our phones don't ring off the hook when markets decline is because most of our clients have seen it before. This isn't their "first rodeo," as they say in country songs. For those who are new to investing and who may get nervous, here's a bit of history: