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Now, your friend Jane started investing at the same time you did, but didn't get
out. How much would her portfolio be worth at the end of the following bear market
from 2000 to 2003?

1 Answer

1 vote
At the end of the bear market from 2000-2003, Jane's portfolio would be worth significantly less than yours. During this three-year period, the S&P 500 dropped by over 45%, meaning that Jane's portfolio would have been worth a fraction of what it was worth when she started investing. This is a great example of the importance of diversifying investments and having an exit strategy in place, as it may have helped Jane to minimize her losses during this period.
User MKumar
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