Summary: Bear markets mean falling stock prices of 20% or more from index highs.

From Yahoo Finance: 2025-05-01 11:38:00

A bear market means falling stock prices, not courage or wisdom. It happens when prices drop 20% from an index’s high. Recent tariff policies caused experts to warn of a new bear market in the U.S. Learn how to protect your wealth.

Bear markets are temporary detours from bull markets, which are periods of rising stock prices. Bull markets last longer and offset bear market losses. Market corrections are declines of less than 20% from a high. President Trump’s tariff pause caused stock prices to rise.

Market corrections and bear markets occur when more investors sell than buy due to uncertainty. Changing tariff rules and conflict with China prompt investors to seek safer investments like gold. Selling stocks before a bear market can be wise, but timing the market is challenging.

One strategy during bear markets is to maintain your investing plan. Keep contributing to your accounts, hold onto your investments, and wait for the bear market to end. This strategy allows you to take advantage of lower prices and avoid missing out on recovery gains.

Bear markets are temporary and can cause anxiety, but staying calm and sticking to your investment plan is key. By continuing to invest during market downturns, you can take advantage of lower prices and position yourself for future gains.

Read more: What is a bear market, and are we in one?