Across the last four major bear markets â 2018, 2020, 2022, and now 2025 â the same brutal pattern keeps repeating đ
When fear peaks, investors rush for the exits đââïžđš
đ What the data shows:
US mutual fund & ETF flows reveal massive outflows at the worst possible moments.
Not because fundamentals vanishâŠ
But because short-term pain becomes emotionally unbearable đ°
đ History repeats itself:
âą 2018 â Heavy selling during crypto & equity drawdown
âą 2020 â Record outflows during the COVID shock đŠ
âą 2022 â Panic selling amid aggressive rate hikes
âą 2025 â Investors again pulling money near cycle lows
â This is not risk management.
đ This is emotional capitulation.
đ„ The real damage isnât the drawdown.
Itâs what happens after.
By selling in panic, investors interrupt compounding â the single most powerful force in wealth creation đ„
đ§ âThe first rule of compounding is to never interrupt it unnecessarily.â
đ Compounding doesnât fail because markets are volatile.
It fails because investors exit exactly when volatility creates opportunity đŻ
đ Bear markets are not accidents.
They are a structural feature of every financial system.
Every long-term uptrend is built on discomfort, uncertainty, and ugly headlines đ°
đ History is clear:
âą Those who sell in fear often miss the recovery
âą Those who stay invested â or add selectively â benefit the most when sentiment flips đ
â±ïž The market doesnât reward perfect timing.
đ It rewards discipline, patience, and thinking differently from the crowd
â The real question isnât whether prices can go lower short term.
Itâs whether youâre investing with a long-term framework â or reacting to fear like everyone else.
Because every cycle has winners đ
And almost alwaysâŠ
Theyâre the ones who didnât sell when everyone else did.