A bear market is when stocks see a 20 percent decline or more from a recent high.
Why It's Important
The S&P 500 officially hit bear market status on Monday, dropping 20 percent from its 52-week high. Historically, these periods last about 13 months on average. So, with that being said, brace yourself for more blood shed in the markets. The good news is if you have been eyeing a stock for a while, this period may be the perfect time to buy, buy, buy! If you are worried about losing money in your retirement and you have decades left before it's time to retire, you will be fine! Usually, the market bounces back and when it does, it typically goes higher than it previously did. Sit back and enjoy the ride!
P.S. This is the last Wednesday Word of the Week for the year. It is also the last one in my stock market series! Please let me know what you thought! I will be doing a blog post to recap all of the words (in case you missed some). Happy New Year!