“In bear markets, stocks return to their rightful owners.” – J.P. Morgan
I love this quote. It summarizes a ton of insights into a simple, succinct message.
There is a lot to unpack here.
In short, it means that when stocks fall down in price, panicked sellers tend to dispose of their holdings in desperation. Perhaps they are scared of market declines due to being overextended or not knowing that stocks can decline in price. Those are both expensive lessons, and then some.
This post originally appeared at Dividend Growth Investor.