Should You Worry About Bear Markets?

As difficult as bear markets can be for investors since no one likes to see stocks fall dramatically, it’s important to remember that these declines are normal. Not only that, the stock market has recovered from every one of these setbacks. Before you panic, consider the following.

What is a bear market?

Generally, bear markets occur when a broad index falls 20% or more from its most recent high. On the flip side, investors usually view an increase of 20% or more from recent lows as a bull market.
Despite these guidelines, there’s no “official” declaration of a bear or a bull market. Plus, these designations may vary by index. For instance, it’s possible for the Nasdaq to enter bear market territory before the Dow, or vice versa.

Bear Markets by the Numbers

On average, bear markets tend to be much shorter than bull markets. The average bear market for the S&P 500 lasts less than a year—289 days. By that metric, the 2022 bear market lasted a bit longer than normal, clocking in at 10 months. Bull markets, on the other hand, tend to last more than two years on average, historically speaking.

Bogart traditional v roth-5

Source: Forbes

The bottom line is that neither the ups nor the downs last forever, even if they feel as though they will. During the worst downturns, there were short-term rallies and buying opportunities. And in some cases, people have profited over time by investing carefully when things seemed bleakest.

If you’re reconsidering your current investment strategy, try not to let volatility get the best of you. A financial advisor can help you remove some of the emotion from the equation to ensure your portfolio aligns with your goals regardless of current market conditions.

If you have concerns about how today’s stock market might impact your portfolio over time, contact a Bogart Wealth Advisor today.

Please remember that past performance is no guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Bogart Wealth, LLC [“Bogart Wealth”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level (s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Bogart Wealth. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Bogart Wealth is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Bogart Wealth’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at bogartwealth.com

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