How To Invest In A Bear Market
The S&P 500 sunk into bear market territory on December 24, 2018. A “bear market” is when stocks see a 20 percent decline or more from a recent high — but they’re also marked by overall pessimism on Wall Street. CNBC's Jeff Cox breaks down how to maneuver a bear market investing environment.
Since World War II, bear markets have lasted 13 months on average, and stock markets tend to lose 30.4 percent of their value. During those conditions it usually takes stocks an average 22 months to recover, according to analysis from Goldman Sachs and CNBC.
It's helpful to know what a "bear market" is, because based on history it looks like we could be here for a while.
The term on Wall Street is synonymous with serious, long-lasting declines in stock markets. In numeric terms, a bear market is a 20 percent or more drop from a recent peak.
The S&P 500 hit that milestone on Monday December 24, dropping 20 percent from its 52-week high. Markets have stumbled through what is usually one of their best months of the year, with indexes on track for their worst December performances since 1931, during the Great Depression.
Aside from a percentage drop, there are other, more emotional ways to measure a bear market.
Pessimism tends to prevail. When good news isn't enough to hold off sellers and despite solid economic conditions, markets continue to tank — that's a bear market. The glass-half-full scenario is often overlooked, and any positive news seems to be forgotten by the close of trading.
In December, oversold markets struggled to make a comeback, suggesting that investors are worried about something bigger. Still, economic fundamentals are not giving red flags of a recession, which is usually a necessary condition for a full-fledged bear market.
» Subscribe to CNBC: http://cnb.cx/SubscribeCNBC
About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: http://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC
Follow CNBC News on Google+: http://cnb.cx/PlusCNBC
Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC
#CNBC
How To Invest In A Bear Market
Видео How To Invest In A Bear Market канала CNBC
Since World War II, bear markets have lasted 13 months on average, and stock markets tend to lose 30.4 percent of their value. During those conditions it usually takes stocks an average 22 months to recover, according to analysis from Goldman Sachs and CNBC.
It's helpful to know what a "bear market" is, because based on history it looks like we could be here for a while.
The term on Wall Street is synonymous with serious, long-lasting declines in stock markets. In numeric terms, a bear market is a 20 percent or more drop from a recent peak.
The S&P 500 hit that milestone on Monday December 24, dropping 20 percent from its 52-week high. Markets have stumbled through what is usually one of their best months of the year, with indexes on track for their worst December performances since 1931, during the Great Depression.
Aside from a percentage drop, there are other, more emotional ways to measure a bear market.
Pessimism tends to prevail. When good news isn't enough to hold off sellers and despite solid economic conditions, markets continue to tank — that's a bear market. The glass-half-full scenario is often overlooked, and any positive news seems to be forgotten by the close of trading.
In December, oversold markets struggled to make a comeback, suggesting that investors are worried about something bigger. Still, economic fundamentals are not giving red flags of a recession, which is usually a necessary condition for a full-fledged bear market.
» Subscribe to CNBC: http://cnb.cx/SubscribeCNBC
About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: http://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC
Follow CNBC News on Google+: http://cnb.cx/PlusCNBC
Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC
#CNBC
How To Invest In A Bear Market
Видео How To Invest In A Bear Market канала CNBC
Показать
Комментарии отсутствуют
Информация о видео
Другие видео канала
How to Invest in a Bear Market -- Thoughts From David Gardner5 Tips For Bear Market Strategy! How to Invest? Explained By CA Rachana RanadeWarren Buffett: Just Looking At The Price Is Not Investing | CNBCHow To Profit From A Stock Market Crash (For Beginners)Defining a Bear Market4 Bear Market Rules to Help Guide Your Investing Decisions | Fisher InvestmentsStock Multiples: How to Tell When a Stock is Cheap/ExpensiveWarren Buffett reveals his investment strategy and mastering the marketHOW TO INVEST IN THE STOCK MARKET FOR BEGINNERS! £100 or $1000 STOCKS, SHARES, BONDS EXPLAINED!How to Sell Put Options in a Bear Market"The Next Bear Market Is Going To Be A Nightmare" | Jim Rogers Last WARNINGPreparing For a BEAR Market!! Complete 101 Guide!! 🐻What is Short Selling | Make Profit When Stocks Price Falls | HindiBull and Bear Markets (Bullish vs. Bearish) Explained in One Minute: From Definition to ExamplesWatch CNBC's full interview with Apple CEO Tim CookCharlie Munger's advice on investing and life choices that make a person wealthyTom Lee: 'Treacherous' market activity paves way for 'violent rally' in FebruaryPeter Lynch: How To Make Millions During a Market Crash?Day Trading in a BEAR Market 🐻 (Strategies & Tips!)Professional Price Action Trading Strategies To Profit In Bull & Bear Markets