BEAR Market??!! Have you heard this term in the news lately? Probably... but what does it REALLY mean?
A bear market occurs when the value drops 20% below the all time high. On January 4th, 2022 the Dow Jones Industrial Average reached an all time high at 36,799.65. In order for the index to be considered a bear market the value would need to fall below 29,439.72.
While no one wants to see the values of their investments fall 20%, there is a silver lining... especially for long term investors.
According to the article below, there have been 14 bear markets since 1932. The average return after those was 175%!! https://www.cnn.com/2022/05/23/investing/markets-charts-technical/index.html
Check out the article and let me know what you think.
If you'd like to discuss how potential bear markets affect you and your long term strategy, then I would love to hear from you!