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How Often Do Bear Markets Occur?
I enjoy studying market history not because it makes it any easier to predict the future but because it can set helpful baseline assumptions. For example, there have been permabears predicting a massive financial crisis and stock market crash every single year since the Great Financial Crisis in 2008. A crash is always a possibility, of course. But there have only been five crashes in the 50% or worse range over the past 100 years. Crashes happen but they’re rare. It doesn’t make sense to spend 100% of your time preparing for something that might happen 5% of the time. I’m not dismissing market crashes. That ... (full story)