Chicken-little market pundits have been telling us the sky is falling for the last several years, yet US equity indexes have continued to average double digit gains year over year. Although the rally up from the market bottom on March 9, 2009 hasn’t been a steady climb, it’s endured through tremendous political and economic change. True, US markets had several +15% pullbacks over the last decade. But which one ever lasted?

It made me think- why is it that we always expect rallies to end? As markets march upwards, we all wait in anticipation for another fall. Psychologists might say we pay for the pain of future losses in installments of current worry and negativity. Eventually, we believe, when the market is dropping it will be cathartic to say we expected it.

Even with the quintupling of the S&P 500 price index over the last 10 years (since market bottom on 3/9/09) many are still in disbelief that our economy and stock market is doing well. Wage growth, low unemployment, low interest rates and low inflation… Things are economically good in the US.

Economists are quick to point out signs that growth is slowing. Even if that turns out to be true, we don’t believe or behave as if the next bear market is around the corner. Besides, missing out on another bull market is quite possibly more expensive than holding tight through a pullback.

You can read more of Fidelity’s thoughts on the potential coming bear market here:

https://www.fidelity.com/viewpoints/market-and-economic-insights/is-bear-market-over