Why staying invested during a market fall is often the most powerful decision you can make.
You may have heard the term bear market in recent headlines. A bear market is defined as a period where stock markets fall by 20% or more from recent highs. While these periods can feel unsettling, they’re a normal part of the investment cycle – and they’ve happened many times before.
Interestingly, the term bear market comes with a useful piece of wilderness advice: if you encounter a bear in the wild, the best thing to do is stay calm and play dead. It may go against instinct, but it’s often the safest move.
The same applies to a bear market in investing. When markets fall, the urge to react – to sell, to move to cash, to “do something” – is strong. But just like in the wild, reacting impulsively can make things worse.
At Chartered Capital, we build portfolios with downturns like these in mind. Through smart diversification and a long-term focus, your portfolio is designed to weather short-term volatility. History shows that markets recover, and those who stay invested are best positioned to benefit from the rebound.
It’s also worth remembering: some of the best market days tend to follow closely after the worst ones, often within one week. Missing just a handful of those good days can have a big impact on long-term returns.
So if you’re feeling nervous right now, that’s completely normal. But the best course of action might just be… inaction. Stay invested. Stick to your plan. And remember – playing dead isn’t inaction, it’s strategy.
If you’d like to talk through your portfolio or current market conditions, we’re always here to help.
In Their Own Words
