Everything Investors Should Know About the Bear Market

The months-long decline for the S&P 500 index has pushed stocks so far from their all-time highs that the markets are now officially considered a bear market.

As of Monday afternoon, the S&P 500 index is down nearly 21% since the start of 2022, with companies like Amazon and Google parent Alphabet, down 39% and 27% respectively, are leading the way. Elon Musk's Tesla has also lost 45% of its market value since January - lost more than $500 billion in market value. With inflation and global uncertainty, the problem was exacerbated as experts predicted that a recession could be imminent. Here's what to know about bear markets and what to do when you find yourself in a bear market.

How long do bear markets last?

Veldkamp said, “The good thing is, every downs have their ups. Throughout history, bear markets have always bounced back.” “Believe that you will gain back what you lost in time long before you retire,” she says. "Usually, it takes several years to make up for some losses like this." The average bear market lasts 359 days, and Stucky adds that it can take exactly 38 months to go from the bottom of the bear market to the all-time high. He says going through such a long process can be stressful, and for some investors it may be beneficial to break the habit of checking their balances frequently. “There's no reason to add more anxiety to your life by checking your account several times a day, every day or every other day,” Stucky says. “You can check once a month and feel better.”