If a Bear Market Is Coming, History Says This Strategy Will Set Investors Up for Long-Term Success

Consider the current correction we're seeing in semiconductor stocks. Both the VanEck Semiconductor ETF and the iShares Semiconductor ETF are roughly 20% off their highs set only around a month ago. Historically, 20% bear markets in the S&P 500 (SNPINDEX: ^GSPC) happen about once every four years. In both cases, investors who sold low and stayed on the sidelines permanently damaged their long-term returns. But you'd also see gains on all of those purchases you made during the bear market.