The Motley Fool says investors who keep regular contributions through bear markets can buy more shares at lower prices with dollar-cost averaging; it notes the S&P 500 recovered from every prior bear market and says consumer staples and healthcare tend to fare better.
The article counts roughly 27 S&P 500 bear markets since 1928, averaging 289 days, compared with 28 bull markets averaging 988 days. It says some of the market’s strongest days occur during or just after steep declines, and that disciplined investors have tended to outperform those who pause contributions or panic-sell.
For a more defensive portfolio, the article suggests considering consumer staples and healthcare, naming Procter & Gamble and Johnson & Johnson as examples and saying both have long records of paying dividends. It discloses that author Dana George holds Procter & Gamble and that The Motley Fool recommends Johnson & Johnson.
