What History Teaches Us About Market Cycles
In Part 1 , we explored sequence-of-returns risk and why timing matters more than long-term averages in retirement. In Part 2 , we discussed income layering and annuities as tools to stabilize cash flow and reduce forced selling during downturns. Now, in Part 3, we step back and look at the big picture: what historical stock market cycles teach retirees about risk, recovery, and planning. Markets Move in Cycles — Always Have, Always Will Stock markets have never moved in a straight line. Over decades, they follow repeating cycles of: Expansion (bull markets) Peaks Contractions (bear markets) Troughs and recoveries These cycles are driven by economic growth, interest rates, inflation, and investor behavior — not by any single event. Every major downturn in history felt unprecedented at the time. Every one eventually recovered. A Historical Reality Check Looking back over more than 100 years of market history: B...