What is a Bear Market?
The bear market is a market where stock prices are falling, which encourages investors to sell because the downward trend is highly unpredictable. Keeping shares in a bear market can be risky because the investment may have lost complete value. A bear market happens when stocks decline at least 20 percent of their peaks. A correction is when stocks fall 10 percent.
Historically, the average bear market lasts for 15 months. While there are several instances of what causes bear markets, it is important to look at other sources for a return on investment during these times. Bear markets are volatile because they are unpredictable and investors can lose a substantial amount of money.
Fifteen months in a bear market without a correction is devastating to any investor's portfolio and the damage can even result in losing more assets than you started out with. However, there are measures that can be taken to protect yourself and your investments during these negative times. An asset group that does not follow the decline of bear markets is Precious Metals. Spot prices of Precious Metal coins and bullion do not flow with the prices of shares in the stock market. During periods of a bear market and a correction to the market, a safe investment vehicle is Precious Metals.