If you're a consistent investor, bad markets can be a good thing
Benjamin Graham is credited with the idea that, in the short-run, the market is a voting machine but in the long-run, the market is a weighing machine. So long as companies continue to grow their profits over time, the market will eventually recognize the value of companies’ underlying earnings power. Under this assumption, it is worth considering the impact that different market scenarios can have on long-term wealth accumulation. While bull markets are more fun than bear markets, ugly markets can provide significant benefits. Most importantly, if you are a consistent investor — and not a retiree in the drawdown phase of your investment lifecycle — bad markets can be great for growing long-term wealth.