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Worried About a Bear Market? Here’s How Long It Could Last

Worried About a Bear Market? Here’s How Long It Could Last Bulman Wealth

We hear the term “bear market” and may start to panic. But bear markets don’t always last long, and one can be quite different from another. There are many factors that can influence the market, making it very hard to predict its movements. If you’re worried about a bear market, know the facts.

How Long Does a Bear Market Typically Last?

A bear market is a technical term, and it means that the market has fallen 20% or more from recent highs due to widespread panic or pessimism. Bears get a bad reputation because when they attack, they swipe down with their paw, as opposed to bulls who lift with their horns. Bear markets can be long or short. On average, a bear market for the Dow lasts 206 trading days and 146 days for the S&P 500.[1] The bear market between 2007 and 2009 lasted for 546 days. But they can be much shorter, such as in 2020 due to COVID, which was followed by record market highs.[2]

What Do Rising Interest Rates Have to Do with It?

The Federal Reserve cut interest rates to near-zero during the pandemic and has been raising them since early 2022. Rising interest rates can sometimes cause market volatility. The market tends to respond poorly to higher borrowing costs because it makes the cost of doing business more expensive. Investors sometimes move into more defensive investments initially.[3] Since World War II, 11 out of 14 monetary policy tightening cycles have been followed by a recession within the next two years.[4]

Will You Alter Your Retirement Plans?

You don’t have to let your retirement be held hostage by the market. With a solid plan in place, you don’t have to delay your retirement if you don’t wish to. However, if you don’t have a solid plan in place and you’re too exposed to risk, you could end up wanting to delay your retirement to give your portfolio time to recover before you start withdrawing from it to generate income. A recession could change how you make other decisions, like when to claim Social Security, when to take the big retirement vacation you’ve always dreamed of, or how much to initially distribute from your IRA.

No one can predict the future, but anyone can have a plan to help protect their savings from market downturns. To start with, know the dos and don’ts in a volatile market. This is especially important if you’re nearing or in retirement, as you have less time to rebuild your nest egg in the event of a market crash. We can help you create a plan for bear markets, short and long.

[1] https://www.marketwatch.com/story/the-dow-just-tumbled-into-a-bear-market-ending-the-longest-bull-market-run-in-historyheres-how-those-downturns-last-on-average-2020-03-11
[2] https://www.forbes.com/sites/sergeiklebnikov/2022/05/23/heres-how-long-it-takes-for-stocks-to-recover-from-bear-markets/?sh=484d30182565
[3] https://www.investopedia.com/investing/how-interest-rates-affect-stock-market/
[4] https://finance.yahoo.com/news/the-case-against-a-near-term-recession-morning-brief-101455569.html


Disclosure:
All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication of future results.
Opinions expressed herein are solely those of Chris Bulman Inc. dba Bulman Wealth Group and our editorial staff. The information contained in this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual adviser prior to implementation. Advisory services are offered by Chris Bulman Inc. dba Bulman Wealth Group an SEC Investment Advisor notice filed in California, Pennsylvania, Texas, and Nevada. Investment Advisory Services also offered through Retirement Wealth Advisors, LLC. a Registered Investment Advisor. Bulman Wealth Group and Retirement Wealth Advisors, LLC. are separate entities, independently owned. Insurance products and services offered through Chris Bulman Inc dba BWG Insurance Agency and Ameritas Life Insurance Corp. CA Insurance License #0D57586. Being registered as an investment adviser does not imply a certain level of skill or training.
Bulman Wealth Group, BWG Insurance Agency and Ameritas Life Insurance Corp. are not affiliated with or endorsed by the Social Security Administration or any other government agency.
The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the States of California, Pennsylvania, Texas, Nevada, or where otherwise legally permitted.
Images and photographs are included for the sole purpose of visually enhancing the website. None of them are photographs of current or former Clients. They should not be construed as an endorsement or testimonial from any of the persons in the photograph.
Purchases are subject to suitability. This requires a review of an investor’s objective, risk tolerance, and time horizons. Investing always involves risk and possible loss of capital. 


All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or an indication of future results.

Opinions expressed herein are solely those of Chris Bulman Inc. dba Bulman Wealth Group and our editorial staff. The information contained in this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Investment advisory services are offered through Chris Bulman Inc dba Bulman Wealth Group, an SEC Registered Investment Advisor. Insurance products and services are offered through Chris Bulman, Inc. dba BWG Insurance Agency and Ameritas Life Insurance Corp., CA State Insurance License # 0M46922. Being registered as an investment advisor does not imply a certain level of skill or training.

Bulman Wealth Group, BWG Insurance Agency and Ameritas Life Insurance Corp. are not affiliated with or endorsed by the Social Security Administration or any other government agency.

Any statements or opinions expressed should in no way be construed or interpreted as a solicitation to sell, or offer to sell, advisory services to any residents of any State other than the States where otherwise legally permitted.

Images and photographs are included for the sole purpose of visually enhancing the website. None of them are photographs of current or former Clients. They should not be construed as an endorsement or testimonial from any of the persons in the photograph.

Purchases are subject to suitability. This requires a review of an investor’s objective, risk tolerance, and time horizons. Investing always involves risk and possible loss of capital.

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