This Investment Strategy Has Been Foolproof Since 1900 -- 104 for 104 -- and It's the Closest Thing to a Wall Street Guarantee
One of the hardest things for new investors to come to terms with, and one of the reminders tenured investors regularly need, is that stocks can go down just as easily as they can climb.
In 2021, the iconic Dow Jones Industrial Average (DJINDICES: ^DJI), broad-based S 500 (SNPINDEX: ^GSPC), and innovation-driven Nasdaq Composite (NASDAQINDEX: ^IXIC), set multiple all-time closing highs and benefited immensely from an abundance of cheap capital tied to the COVID-19 pandemic.
In 2022, it was a different story. Historically high inflation coerced the Federal Reserve to put an end to the cheap capital gravy train by hiking interest rates at the quickest pace in more than 40 years. The end result was the Dow Jones, S 500, and Nasdaq Composite all dipping into a bear market and producing their worst annual returns since 2008. The velocity of downside moves that accompanies bear markets has a lot of investors rightly wondering when the volatility will slow and a new bull market will emerge.
Source Fool.com
