What should you do in a Bear Market?

As you probably know, bears and bulls are common references used within the stock market.

A bull will typically raise its horns upward to attack, while a bear will reach its head downward to attack.

Specifically, a bear market is when the overall stock market drops in value by 20% or more from its recent highs.

Bear markets can be difficult for investors, as they seen their portfolio go down in value, but bear markets are nothing new.

Between 1929 – 2020, there have been 26 bear markets.

Each of the 26 bear markets has been followed by a bull market, providing solid gains to help make up for losses.

During bear markets, stocks average a drop of approximately 36%.

However, during bull markets, stocks average a rise of approximately 114%.

Also, on average, bear markets last an average of 289 days, while bull markets can run upwards of 991 days.

Not only that, some of the strongest days of the S&P 500 index have actually occurred during bear markets, so trying to time the market right can be nearly impossible.

So what should you do?

Keep investing for the long term, knowing that buying in a bear market is like buying during a sale, knowing that there is a great opportunity to reap the rewards down the road.

Still have questions? Contact us to discuss your investments today!

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