7-Year Track Record Proves Bear Markets are Investment Opportunities

A financial writer shares their seven-year track record of buying assets during bear markets and reveals why they believe investors should welcome, rather than fear, such downturns.

The writer notes that a bear market is defined as a decline of 20% or more in a broad market index lasting at least two months. Bitcoin (BTC) has experienced several bear markets, including one from its all-time high near $126,080 to its bear market low near $58,556 this year.

The writer claims that buying Bitcoin during the 2022 bear market returned 393%, and a similar investment in the S&P 500 ETF Trust (SPY) during the same period returned 94%. To achieve these results, the writer used dollar-cost averaging by regularly investing on a weekly schedule throughout both bear markets.

The writer suggests that preparing for bear markets is essential, as they are inevitable. The writer notes that having some cash set aside can provide psychological comfort and enable investors to take advantage of opportunities during such times.