Last week I wrote that in chaotic markets, prediction is fragile but process is durable. That idea had me looking back at how my proprietary indicator signal performed during a well-known chaotic period, the 2008–2009 bear market.
Investors were terrified in the first few weeks of that year. SPDR S&P 500 ETF (SPY) dropped nearly 29% before finally bottoming on March 6, the end of a brutal bear market that wiped out more than 55% of the index in just over a year and a half.
Even if the index doesn’t fall that far, a bear market is always something to keep in mind. Fortunately, investors don’t have to sit on the sidelines when markets turn lower. The truth is, there’s always a bull market somewhere.
This post originally appeared at Investors Alley.