1 Thing Smart Investors Know About Bear Markets
The S&P 500 came close to entering a bear market earlier this year, but ultimately bounced back before that happened. The Nasdaq Composite wasn't as lucky but it, too, has been rallying recently, and as of Monday's close, it was around 14% away from its recent high, putting it in correction territory, but no longer down more than 20%, which is when a bear market exists.But the worst is not necessarily over. There's still plenty of uncertainty ahead, and the risk of a recession remains elevated due to tariffs. Investors shouldn't be surprised if both the S&P 500 and the Nasdaq enter bear market territory later this year. And while that may be concerning, for smart investors, they know it can be a time to take advantage of depressed valuations.If a bear market hits, it can be a stressful time to be invested in stocks; no one wants to see red on their portfolio. And continually looking at your holdings and obsessing about them can lead to stress and result in panic moves, like selling quality stocks just because the market as a whole is doing poorly.Continue reading
The S&P 500 came close to entering a bear market earlier this year, but ultimately bounced back before that happened. The Nasdaq Composite wasn't as lucky but it, too, has been rallying recently, and as of Monday's close, it was around 14% away from its recent high, putting it in correction territory, but no longer down more than 20%, which is when a bear market exists.
But the worst is not necessarily over. There's still plenty of uncertainty ahead, and the risk of a recession remains elevated due to tariffs. Investors shouldn't be surprised if both the S&P 500 and the Nasdaq enter bear market territory later this year. And while that may be concerning, for smart investors, they know it can be a time to take advantage of depressed valuations.
If a bear market hits, it can be a stressful time to be invested in stocks; no one wants to see red on their portfolio. And continually looking at your holdings and obsessing about them can lead to stress and result in panic moves, like selling quality stocks just because the market as a whole is doing poorly.
