The Nasdaq moved from correction to bear market, historically lasting extended periods

From Nasdaq: 2025-04-09 04:40:00

Last week saw a significant sell-off in the stock market, with the Nasdaq falling 10.7%, the S&P 500 tumbling 9.9%, and the Dow Jones slipping 8.8%. This pushed the Dow and S&P 500 back into a correction, while the Nasdaq entered a bear market.

The Nasdaq bear market has historical data showing that it could last for quite some time. Over the last decade, the Nasdaq has experienced six corrections, with four turning into bear markets. The 2018 and 2020 sell-offs were short-lived, but it took until early 2024 for the Nasdaq to reach a new high after the 2022 bear market.

Investing during bear markets can lead to powerful gains. Buying quality stocks even halfway through a sell-off can result in exceptional returns over the following years. The key is to focus on excellent companies at decent prices rather than trying to time the market.

Earnings estimates are expected to come down due to the current bear market. Companies that rely on international trade may see a decrease in earnings forecasts, impacting their stock prices. Valuations of growth stocks have become stretched, leading to concerns about their future performance.

Preparing for a prolonged bear market involves focusing on what you can control and conducting a portfolio review. Owning stocks of companies with sound fundamentals and resilient business models can help navigate market volatility. Long-term investors should stay focused on the business’s future growth rather than short-term stock price fluctuations.

Opportunities for potentially lucrative investments may arise during bear markets. Analysts may issue “Double Down” stock recommendations for companies that are expected to perform well. Investors who missed out on previous successful stocks can take advantage of these opportunities before it’s too late.



Read more at Nasdaq: The Nasdaq Just Moved From a Correction to a Bear Market. Here’s How Long It Could Last.