Bear Market Myths Debunked: Separating Fact From Fiction
Four truths that will change your perspective on stock market declines.
There may not be a scarier pair of words to see in a financial news headline than "bear market."
A bear market, typically defined as a 20% decline from a broad market index's previous high, can be jarring, especially when the sell-off happens quickly. You only need to recall the news stories in April when President Donald Trump's global tariff announcements sent the market tumbling to understand the fear a bear market can bring.
However, they're also a healthy and necessary part of the market's cycles, and understanding bear markets can help you navigate them wisely -- or even use them to your advantage. Here are four truths about bear markets that every investor should know.
