Bear Markets Matter More Than You Think (Part-2)

Bear markets matter, and they matter much more than you think. (Read Part 1 Here)

In part-1, we discussed the differences between a “correction” and a “bear market.” But what is often missed by mainstream analysis is the long-term damage done to investor’s financial outcomes.

Now and then, you will see a version of the following chart floating around suggesting that over the long-term, “bear markets” don’t matter.

Bear Markets Matter, #MacroView: Bear Markets Matter More Than You Think (Part-2)

If you only do a cursory analysis of the chart, such would undoubtedly seem to be the case.

The problem is the analysis is exceptionally deceptive due to how math works.