When the stock market declines by 20% from its highs, it’s called a bear market. And boy, are we in one. In fact, we just suffered the worst January-to-June period in 52 years. Nixon was in the White House the last time stocks fell this much in the first six months of a year.
How did we get here, and what can we look forward to next? That’s what we’re talking about this week.
Remember, even though we sometimes talk about specific investments on this show, don’t take them as recommendations because they’re not. Before investing in anything, do your own research, and make your own decisions.
You can watch this episode below, or if you’d prefer to listen, you can do that with the player at the top of this article. Or, you can download the episode wherever you get your podcasts:
What’s the deal with this bear market?
We’re in a bear market. What does that mean? Well, it means that a stock index you’re following is down 20% from its recent high. So how did we get here and why are stocks doing so poorly?
- Here are some early lessons Stacy learned as a stockbroker during one of history’s worst market crashes.
- Here are “9 Tips for Sane and Successful Stock Investing.”
- I have an article at Forbes about the definition of a market correction, including what makes a bear market.
- Check out our podcast episode on whether it’s a good time to buy stocks.
- Supply chain issues could be contributing to our current woes. But what if the issues get fixed? What items might see lower costs?
- Read our article on the signs that a recession is on the way.
- Listen to our podcast episode discussing whether a recession is on the way.
Should you invest during a down market?
It’s a scary time to invest, but does that mean you shouldn’t? We share our current investment strategies and talk about how you can make the most of a bear market.
- Despite the bad market, Stacy recently started buying.
- Here’s what to do when your investments go down in value.
- Are you getting ready to retire? We have an article on what to do when retiring during a bear market.
- Want to start investing while stocks are on sale? Our guests have a simple guide to start investing.
- Now that things are a bit uncertain, is it time to convert your traditional IRA to a Roth? We’ve got an article about why a bear market might be the time for a Roth conversion.
- Not sure how to invest right now? Check out our YouTube interview with David Stein on how to invest when everything is falling.
- Now is a good time to learn how to be a better investor. I share tips on how you can improve your ability to invest.
- A bear market can be a good time to harvest losses for income tax purposes. Check out our article on how to use tax loss harvesting and other strategies to reduce taxes.
Meet this week’s guests, the Debt Free Guys
David and John Auten-Schneider are the Debt Free Guys and hosts of the Queer Money podcast. They enjoy helping their community live fabulously, not fabulously broke.
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About the hosts
Stacy Johnson founded Money Talks News in 1991. He’s a CPA, and has also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate.
Miranda Marquit, MBA, is a financial expert, writer and speaker. She’s been covering personal finance and investing topics for almost 20 years. When not writing and podcasting, she enjoys travel, reading and the outdoors.