Holding stocks investors believe in, especially during volatility and bear market lows, is key for the long term. In this clip from "Ask Us Anything" on Motley Fool Live, recorded on June 21, Motley Fool contributor Rick Munarriz talks about his experience with previous bear markets and shares what investors should consider doing during this one.
Rick Munarriz: Someone that's been with the Fool since 1995, basically 27 years, this is my fourth bear market officially, with the Fool. I've seen these ups and downs. It happens and it's rough. It's rough especially since the Stock Advisor like the Rule Breakers, that investing style which has these aggressive growth stocks, they got hit hard. But just like we saw last Friday, Friday's trading was really weird and I don't mean to focus everything on one day, but the Nasdaq was up, I think 1.3%, the S&P 500 was up to 0.3%, and the Dow 30 was down. It's a weird thing where this is not the way it was built. The Nasdaq has obviously been hit harder than the S&P 500 in the general market year-to-date. Even since the correction, I mean, the Nasdaq has been in a bear market, which is more than a 20% correction far longer than the S&P 500 but just technically entered that just a couple of days ago. But, you do have a case where the quality stocks do bounce back. I mean, when there's a sector rotation out of tech, when there's a sector rotation that of Cloud computing stocks, it's not as if their stocks are unscathed. Initially, we saw some of the FAANG stock, some of the most valuable tech stocks hold up pretty well, but eventually they buckled over time. I think that especially with this investing where it's aggressive, you have to hold it over the full cycle. When the stocks are going down, it's very easy to just lose your confidence and say, well, that's it, it's over. But every single time we've had a new high, we've had another new high pass it. I think over time, it helps to hold and focus. Maybe if you're going to add investments, add to the ones, not necessarily ones that are down the most, that would be silly, go for the stocks that you believe in the most going forward, from this point, going forward. Every starting line is a new starting line and the finish line is really where you make it.