What happened to those friends who bought funds in a bear market?

2022-06-22 0 By

On the first trading day of the Year of the Tiger, the market handed out a big red envelope to all the investors. According to statistics, the average investor received 6,700 yuan of blood back, equivalent to a year-end bonus.But in everyone is looking forward to the market can continue to advance, the second trading day to us poured a basin of cold water.Today, the market went a deep V market, gem intraday fell 4.65%, finally closed down 2.45%, although the Shanghai Composite index finally closed red, but the roller coaster trend, can not help but let a person’s mind a tight.Many people like to define markets and debate whether they are in a bear or bull market, but markets are always unpredictable.Warren Buffett famously said that short-term predictions of the performance of the stock market are a kind of poison that should be kept locked away in a safe, hidden from children and adults who act like children in the market.Instead of judging whether it is now a bear market, interfere with their investment decisions, it is better to do a review to the past, we will analyze, those in the bear market to buy the fund’s friends, and finally how?First, we selected a few representative bear markets based on historical data.In recent years, we’ve had four bear markets with significant declines: 2007-2008, 2010-2012, all of 2015, and 2018-2019.Old investors should remember the “dark” days. In fact, I also experienced three of them.If it is a friend who bought in the high ground, it is really a very difficult time to endure, and especially do not want to remember how to get there.Is the so-called bull bear is in a moment, you think is just a normal adjustment, may be the time point of conversion, is also the starting point of the bear market, such as the station in 2007 6124 points.Then, like a waterfall, the index plunged 3, 000 feet, plunging to 1, 664 points in 2008.The 2010-2012 bear market, the longest in recent history, was a struggle, though not a huge one.In 2015, it almost replicated the 2008 tragedy, with the index rising to 5178 points and then falling off a cliff.Everyone is most impressed by the recent bear market, which fell to 2440 points in January 2019. Since then, the stock market has been in a process of repeated volatility, and has remained at 3500 points until now.02 second, let’s analyze the bear market to buy the fund’s friends, behind how.As has been said before, if you buy at the peak of the bull market, then there is no doubt that the year must be a loss, we take the common stock fund as an example.Very few base civilian can make money below the market that drops sharply in the stock market, just be deficient thanks to little problem, we can only pass time of holding a position to come specific analysis.According to the statistics, after a year, the return is between -20% and -50%, which is what we call “halving” the asset.But if the meat is not cut, after three years, the range of loss is significantly narrowed, with an average of -5% to -20%. Especially in 2018, when the decline is relatively shallow, not only the annualized rate of return turns red, but also the cumulative rate of return is as high as 80%.If you look further up and hold your position for more than five or ten years, you’ve already turned negative into positive and your yield is higher.See here, may be a lot of basic people will say, less than the last, who will put the fund five to ten years ah, that is too long, and the original intention of investment also runs counter to.I can understand your mood, fund investment is not a simple thing, this is the third point I want to say.Third, the ability to choose the opportunity to move, as little as possible is the state of mind.In fact, the worst-case scenarios we’ve just analyzed are extreme, and in real life investments, we rarely buy at the top and sell at the bottom.We used to invest money, should be idle funds, this money can resist the risk of possible existence, advance can attack, retreat can defend, in order to stabilize their state of mind.Investors are also human, without the ability to predict the future, can only grasp some big direction.When the market rises to a particularly high level, we should have a sense of worry, the bag is the most important.When the feeling index can not fall, we can buy some, slowly build positions, even if the loss is controllable scope.Take the market now about 3500 points, up and down are possible, but it is obvious that the extent of the upward may be larger, then we can pass the fund to invest, or use the target to stop surplus method to invest.No matter when, the saying that “investing is making friends with time” seems especially true.Choosing the opportunity to move is the ability we need to learn, and the mentality of moving as little as possible, can increase our probability of profit.In 2022, I hope all the basic people can reap “steady happiness”!(Thank you for your attention, I am a small big man in the financial circle, if you have any questions about finance, you can directly click the card below to ask me, looking forward to your consultation and message!)