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Investment fundamentals: Bear markets

June 14, 2022
clock 2 MIN READ

Out of the various animal spirits that sometimes haunt Wall Street (bulls, dogs, black swans or unicorns, anyone?), the bear is perhaps the most feared among investors.

Why? A bear market—defined as a decline of at least 20% in a broad stock market index (such as the S&P 500 Index or the Dow Jones Industrial Average), which most economists agree runs for at least two months—can be scary for investors who lose sight of their long-term investment goals.

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Important information

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice and is intended for educational purposes only. There are risks involved with investing, including loss of principal. Information provided by SEI Investments Management Corporation, a wholly owned subsidiary of SEI Investments Company. Neither SEI nor its subsidiaries is affiliated with your financial advisor. 

Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

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