You may have spotted recent headlines suggesting the US is officially in bear market territory, and wondered what that means and where we all go next.
Technically, the answer is easy. A bear market happens when an index falls 20 per cent from its peak, which is what the S&P 500 has now done.
On January 3, the index of top US stocks hit an all-time high of 4,796.56, but by June 16 it had fallen to 3,666.77, a drop of 23.55 per cent.
Europe has also slipped into bear market territory, with the Euro Stoxx 50 down 20.79 per cent since January 5.
It does not mean that your investments will have fallen by the same amount if you did the wise thing and built a balanced portfolio that contains bonds, cash, shares, gold, commodities and other asset classes.
Yet, you will almost certainly be poorer as 2022 has been a bad year for bonds and a disappointing one for supposed safe-haven gold, too.
READ MORE : https://www.thenationalnews.com/business/money/2022/06/28/how-to-boost-your-net-worth-during-a-bear-market/
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