Economists often worry about bear markets as they are a common part of the economic cycle, occurring when a market drops by 20% or more from its recent high, while a bull market is defined by a 20% increase. Investors can expect to experience around 14 bear markets over a 50-year period, and while retiring during one can be daunting, it is not the end of your financial future.
Explain It To Me Like I’m 5: Economists worry about bear markets, which happen when the stock market drops by 20% or more, but they are a normal part of investing, and if you invest for a long time, you’ll likely see about 14 of them, so it’s important not to panic, especially when thinking about retirement.
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