If a Bear Market Is Underway, History Says This Is the Biggest Investing Mistake to Avoid

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Avoid Panic Selling in a Bear Market

History shows bear markets last far shorter than bull runs, so patience pays off.

Bear markets can be scary, especially when the local rand weakens sharply against the dollar. For JSE investors, the impulse to sell often hits hardest when the rand is under pressure because stocks like Naspers and Prosus, which have significant foreign earnings, may get hit on currency moves even if their core businesses remain strong. History tells us that bear markets typically last around 1.5 years, quite short compared to bull markets' nearly 5 years. Selling into weakness means locking in losses just before a rebound. Instead, maintaining some cash to buy good businesses, like MTN or AngloGold Ashanti, during the dip is smarter. Watch the USD/ZAR: a severe rand sell-off often coincides with broad emerging-market risk-off, but this can overshoot. The risk is that a bear market deepens unexpectedly due to a global shock or rising local interest rates, so don’t be reckless. But knee-jerk panic selling is usually the biggest mistake. this is just our opinion and not financial advice