On February 19, 2020, the S&P 500 closed at an all‑time high of 3,386. By March 23, it had crashed to 2,237 — a 34% decline in just 23 trading days. It was the fastest bear market in history. A $1,000 investment made on the peak was worth only $660 at the trough. Fear was everywhere.
But if you had held on, by August 2020 the S&P 500 had fully recovered to new highs. By the end of 2020, it was up 16% for the year. Those $660 were back to $1,160. And if you had managed to buy another $1,000 at the bottom (March 23), that $1,000 would have grown to $2,300 by year‑end 2021. The difference between selling and buying was staggering.
The lesson is about behavior, not analysis. No one knew on March 23 that it was the bottom. But history shows that bear markets are temporary, while the permanent loss of selling is forever. The investors who did best were those who either did nothing, or who had a plan in advance to buy more when prices fell. Have that plan now, before the next crisis.