As concerns about economic uncertainty grow, financial experts say investors should prepare for potential market swings, but avoid making impulsive decisions. While warning signs exist, historical trends suggest that staying invested remains one of the most effective ways to protect long-term wealth.
Investor anxiety is rising, with about 80% of Americans reporting at least some concern about a possible recession, according to a 2025 survey by the Million Dollar Round Table (MDRT).
Some market indicators are adding to the unease. The Shiller cyclically adjusted price-to-earnings (CAPE) ratio, a metric used to assess long-term valuation. It has climbed to levels last seen around the early-2000s dot-com crash, suggesting stocks may be overvalued relative to historical earnings.
Still, analysts stress that valuation measures cannot reliably predict when a downturn will occur.
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Bear markets are shorter than periods of growth
Market declines are inevitable, but history shows they tend to be shorter than expansions. Research from Bespoke Investment Group finds the average bear market since 1929 has lasted roughly 286 days, just under nine and a half months.
By contrast, bull markets have averaged more than 1,000 days, or nearly three years.
Financial planners warn that selling during downturns can lock in losses. Investors who stay invested and allow time for recovery have historically improved their chances of positive returns.
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Though every recession differs, markets have consistently rebounded. The S&P 500 has climbed nearly 45% since January 2022, the start of the most recent bear market. Since the dot-com bubble burst in 2000, the index has gained close to 400%.
Advisory firm The Motley Fool noted that while broad index investing offers diversification, selectively chosen stocks may outperform. Regardless of strategy, analysts say the most important step investors can take during uncertain times is maintaining a long-term perspective and staying invested despite short-term volatility.
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