We are experiencing the longest bull market in history. It will revert; it always does even though no one knows when. Market declines are seen as buying opportunities by Monday Morning Millionaire Program members.
History shows the following:
- Declines of 5% to 10% usually require a month to recover.
- Declines of 10-20% usually take four months to recover.
- Declines of 20-40% usually take 15 months to recover.
- Declines of more than 40% usually last 22 months and take 58 months to recover. That is nearly five years.
Money that we will need in 5 years or less does not belong in the market. That way, we can avoid needing to sell securities for less for than we paid and take advantage of the bargains that market declines offer.