| Dear , As of June 13th, 2022, both the S&P and the NASDAQ had officially fallen into Bear Territory. And that's a big deal… But, what exactly does it MEAN? You've got questions, and that's understandable… After all, we had just been enjoying the longest bull market in history when the pandemic hit… And we haven't had to deal with The Bear for 11 years! Which means that a sizable number of investors today don't really remember the last time the market dipped this way, and those who do remember the last bear market are probably a little rusty on how to deal with this furry nuisance. 
So. What's up with the Bear? Here are 5 things you need to know: -
The market dips into Bear Territory when it loses 20% or more from its previous high. There's a wide range here… during the Great Depression, there was a 73% drop, whereas the short Bear market in 2020 saw a loss of 34%. On average, Bear Markets see a 35% loss… while Bull markets have an average of 114% gain. -
Bears happen. Yes, that might not be the best news. But it's true… There have been 26 Bear markets since 1929. Over the course of a 50-year investment career, you'll probably see 14 bears rear their ugly heads. Below, you'll find a chart from the S&P Global FactSet that shows 14 notable bear markets: 
You can see here that the 1929 bear market was the famous Crash that ushered in the Great Depression. In 1987, the Bear market was the result of "Black Monday," the biggest single-day stock crash in history. The Dot-Com Bubble was responsible for the bear that hit in 2000, and poor mortgage and lending practices fueled the Financial Crisis of 2008. Then, of course, the most recent bear showed up briefly due to the pandemic in 2020, then circled back on the scene in 2022. -
Bear markets are normally short. They go on for an average of about 9 ½ months, with some as short as just a few weeks. On the other hand, bull markets tend to last much longer… closer to 3 years, in fact. -
Just because there's a bear market, doesn't mean there will be a recession. It depends on many other economic factors… in fact, out of the 26 bear markets, there have been just 15 recessions. -
You can profit during a bear market. Yes, it's different from how you make money when the Bull is in charge. But there are plenty of strategies that put market dips to good use… the key is to keep a cool head and avoid making snap decisions. So… what exactly causes a Bear market? That can vary… but typically high unemployment rates, poor consumer spending, and global events (a war, or the pandemic for example) all play a part. 
Bursting Bubbles are also a contributor to bear markets. For example, the housing bubble in 2008. The Dot Com disaster of 2000 was caused by inflated stock prices on the market, which caused a drop once the "bubble" burst. As I mentioned earlier, there are some excellent ways that you can use a bear market to your advantage… Keep an eye on your inbox, because I'll be sharing more about that in my next email!
Hoping for your success,
Cecil Robles CEO Genesys Financial Group
PS: Want to know more? Here are some great places to get information about bear markets… "What is a Bear Market" on Investopedia "Bear Market: Should You Buy, Sell, or Hold?" on The Motley Fool "A History of Bear Markets" on The New York Times
"How Millionaires Invest During a Bear Market" on US News
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