How to Survive
Bear Markets

5 Critical Facts You Need to
Know About Bear Markets

The post-2009 bull market marks the longest one in U.S. history (by one definition). This amazing run started in March 2009 and lasted well over 3,600 days.1

Of course, it's impossible to predict exactly when a bear market will happen or what will cause it. We do know that they are inevitable, and that they're a natural part of the market cycle.

Whether or not you've been an investor during a bear market in the past, the more you know about them and how people behave during them, the better prepared you'll be to successfully endure them.

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Bull Market

A prolonged period of rising prices, typically gaining 20%+ from the most recent bottom.

Bear Market

A prolonged period of falling prices, typically losing 20%+ from the most recent top.

A Few Notable Bear Markets2

Dec 1961
Jun 1962

S&P 500 LOSS: 28% Factor: Cuban Missile Crisis

Aug 1987
Dec 1987

S&P 500 LOSS: 34% Factors: Black Monday and Currency Fears

Oct 2007
Mar 2009

S&P 500 LOSS: 57% Factor: Housing Market Collapse

Jan 1973
Oct 1974

S&P 500 LOSS: 48% Factors: Monetary Policy and Oil Crisis

Mar 2000
Oct 2002

S&P 500 LOSS: 49% Factor: Dot-Com Bust

5 Things Everyone Should Know About Bear Markets

There have been about
25 bear markets
since 1928.2

The S&P gained
at least 32%
in the year following the last three bear markets in the U.S.3

Bear markets are the natural response to
bull markets
that ran out of steam.

Just about
can cause a correction and a bear market, from evolving investor psychology to geopolitical events.

Statistically, bear markets happen about every
3.5 years.4

On average, bear markets last about
15 months.4

Remember, all bear markets eventually pass!

Financial Lesson: Bear Markets Are Inevitable. Here's How to Keep Your Cool.

Bear markets come and go. They are a natural part of the market cycle. But we never know when they'll happen or what exactly will trigger them. Stay tuned for a future email where I'll catalogue some of the reasons behind the last four bear markets.

While we can't predict when or why bear markets happen, what we do know is that bear markets commonly make people emotional and irrational. They can even breed a crowd mentality that causes paranoia and panic.

Want my advice?

Stop watching what others are doing. Focus on your own needs, portfolio, and risk tolerance.

It's nearly impossible to know what other investors are thinking and doing in real time, just like it's impossible to know what the "bottom" is in a bear market.

So, try to keep a level head and long-term view. And try to stay realistic.

Remember, all bear markets eventually pass! You'll never get to enjoy a market upswing if you get out too soon.

Also, don't forget that I'm here to help.

If someone in your life could use a professional perspective on market corrections and bear markets, please reach out to me. I'd be happy to discuss this topic more and share some helpful advice. Give my office a call at 561-447-1997 or shoot me an email at

Your Team at Baron Silver Stevens Financial Advisors Baron, Silver, Stevens Financial Advisors, LLC

P.S. Want more tips on investing during bear markets? Continue the conversation over email by signing up (my subscribers get my best insights).

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