If a Bear Market Is Coming, History Says the Smartest Investors Are All Making This 1 Move Right Now

In the past five years, the S&P 500 index (SNPINDEX: ^GSPC) generated a total return of 86% (as of July 13). This kind of strong performance reminds investors that buying stocks may be the best way to build wealth.

However, that doesn't mean people aren't worried. The biggest concern today is the market's high valuation. Some might even fear that a bear market is coming in the not-too-distant future.

There is always uncertainty. But the smartest investors are all making this one move to navigate today's environment.

Image source: Getty Images.

Think about the next decade

The best investors are always refreshing their perspective on the stock market. And with a possible bear market looming, it's a great time to remember what is maybe the most important variable to investing success. This is to always maintain a long-term time horizon. Think about the next decade, not the next month, quarter, or year.

The S&P 500 index has experienced drawdowns of at least 20% on numerous occasions in the past several decades. A more muted, but still hard to stomach, 10% decline happens roughly every couple of years. Just in 2026, the benchmark was down 7% on the year as of March 30. As has always been the case historically, the market recovered.

Keeping your attention locked into the next decade and beyond supports the mentality that bear markets, while never fun, are just a blip on the radar. In fact, the most successful investors understand that navigating the inevitable ups and downs is table stakes if they want to achieve impressive long-term returns.

On the other hand, the worst investors trade too frequently in anticipation of events. This can lead to more harm than good. Trying to time the market is almost always a bad move.

Don't listen to predictions

Investor worries, concerns, and fears about a potential bear market are valid. This sort of thinking means you are aiming to figure out ways to upgrade your portfolio to handle whatever might be coming.

No one knows when the next bear market will be, though. It could happen in 2026. It could also be years away. This is always the case, even though it doesn't stop the pundits from trying to make predictions. Ignore these forecasts.

Remember to focus on the next 10 years and beyond, which is a powerful mental tool. This perspective allows you to continue buying high-quality stocks, building a diversified portfolio, and staying the course when times get tough, as they usually do.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.