What is a Bear Market?

We recently stated that this is a “Bear Market.” So what does that mean?

It’s not all that scary, at least not once the market really settles into bear territory. In fact, it can be a great time of opportunity for many investors, particularly away from stocks. It’s worth spending a moment contemplating what a bear market is and why it’s important.

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It’s a Bear Market

I hope everyone had a good Christmas. I’ve been slow to write about the stock market for two reasons. The first is that it would ruin the holiday cheer, and the secondly this is a long developing story that I have written about for a year now and will probably write about for the next year.

But we’ve reached an important threshold. It’s now down 20% off the peak, meaning that we are in a Bear Market. We haven’t been in one for a decade, and there hasn’t been a nasty one for at least two decades, so let’s run down what that means.

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