Investors who held their nerve through the worst bear markets of the past 50 years and remained in equities rather than switching to cash would have gained around 11 per cent as the markets recovered, according to analysis by Vanguard.

Duncan Burns, Vanguard Asia-Pacific chief investment officer, says: “While every investor would like to “buy low and sell high”, it is nearly impossible to achieve that every single time. But the worst-case scenario data of investing at the peak right before a dip highlights the positive outcomes of staying the course.”