What is a Bear Market? - Cabot Wealth Network
  • Home
  • Daily
    • Dividend Stocks
    • Emerging Markets
    • ETFs
    • Growth Stocks
    • How To Invest
    • Income Investing
    • Options Trading
    • Personal Finance
    • Precious Metals Investing
    • Real Estate Investing
    • Small-Cap Stocks
    • Stock Market
    • Value Investing
  • Free Resources
    • Daily
    • Free Reports
    • Previews
    • Videos
    • Webinars
  • Advisories
    • Growth
      • Cabot Growth Investor
      • Cabot Top Ten Trader
      • Cabot Small-Cap Confidential
      • Cabot Early Opportunities
    • Income
      • Cabot Dividend Investor
      • Cabot Income Advisor
    • Options
      • Cabot Options Trader
      • Cabot Options Trader Pro
      • Cabot Profit Booster
      • Cabot Options Institute Quant Trader
      • Cabot Options Institute Income Trader
      • Cabot Options Institute Fundamentals
      • Cabot Options Institute Earnings Trader
    • Diversified
      • Cabot Stock of the Week
      • Cabot Explorer
    • Value
      • Cabot Micro-Cap Insider
      • Cabot Turnaround Letter
      • Cabot Undervalued Stocks Advisor
    • Sector
      • Cabot SX Cannabis Advisor
      • Cabot SX Crypto Advisor
      • Cabot SX Greentech Advisor
      • Cabot SX Gold & Metals Advisor
    • Essentials
      • Cabot ETF Strategist
  • Memberships
    • Cabot Prime Pro
    • Cabot Prime Plus
    • Cabot Options Institute Masters Club
    • Cabot Retirement Club
    • Cabot Sector Xpress Club
    • Cabot Money Club
  • Institute
    • Cabot Options Institute Masters Club
    • Cabot Options Institute Quant Trader
    • Cabot Options Institute Income Trader
    • Cabot Options Institute Fundamentals
    • Cabot Options Institute Earnings Trader
    • Cabot Options Institute Daily News – Free
  • Events
    • Summit
    • Webinars
  • About
  • Manage Account
  • Contact Us
  • Privacy Policy, Terms of Use, and Premium Service User Agreement
  • Analyst Index
  • Glossary
  • Keyword Index
  • Browse Topics
  • Daily Archive

Cabot Wealth Network Logo

  • Home
  • Daily
    • Dividend Stocks
    • Emerging Markets
    • ETFs
    • Growth Stocks
    • How To Invest
    • Income Investing
    • Options Trading
    • Personal Finance
    • Precious Metals Investing
    • Real Estate Investing
    • Small-Cap Stocks
    • Stock Market
    • Value Investing
  • Free Resources
    • Daily
    • Free Reports
    • Previews
    • Videos
    • Webinars
  • Advisories
    • Growth
      • Cabot Growth Investor
      • Cabot Top Ten Trader
      • Cabot Small-Cap Confidential
      • Cabot Early Opportunities
    • Income
      • Cabot Dividend Investor
      • Cabot Income Advisor
    • Options
      • Cabot Options Trader
      • Cabot Options Trader Pro
      • Cabot Profit Booster
      • Cabot Options Institute Quant Trader
      • Cabot Options Institute Income Trader
      • Cabot Options Institute Fundamentals
      • Cabot Options Institute Earnings Trader
    • Diversified
      • Cabot Stock of the Week
      • Cabot Explorer
    • Value
      • Cabot Micro-Cap Insider
      • Cabot Turnaround Letter
      • Cabot Undervalued Stocks Advisor
    • Sector
      • Cabot SX Cannabis Advisor
      • Cabot SX Crypto Advisor
      • Cabot SX Greentech Advisor
      • Cabot SX Gold & Metals Advisor
    • Essentials
      • Cabot ETF Strategist
  • Memberships
    • Cabot Prime Pro
    • Cabot Prime Plus
    • Cabot Options Institute Masters Club
    • Cabot Retirement Club
    • Cabot Sector Xpress Club
    • Cabot Money Club
  • Institute
    • Cabot Options Institute Masters Club
    • Cabot Options Institute Quant Trader
    • Cabot Options Institute Income Trader
    • Cabot Options Institute Fundamentals
    • Cabot Options Institute Earnings Trader
    • Cabot Options Institute Daily News – Free
  • Events
    • Summit
    • Webinars
  • About
  • Sign In
  • Register
  • | Register

3 ETF Clues for Identifying a Market Bottom

Bear Market Archives

What is a Bear Market?

A bear market is defined as one in which each successive decline carries the market to new lows. Falling prices and growing pessimism characterize a bear market.

By definition, a bear market is pretty simple. It’s when the market indexes fall 20% or more from the highs on a closing basis. One you may be familiar with was in 2008 and 2009 during the financial crisis. That was one of the worst we’ve ever had, with the S&P 500 falling more than 50%.

Then in March and April of 2020, the S&P500 fell nearly 35%. Those are obvious standouts, but they aren’t the only examples.

In fact, since 1926, a bear market has come along an average of about every six or seven years. The average bear market has lasted 1.3 years and with an average loss to the bottom of 38%. And that number factors in the Great Depression. The average bull market has lasted 6.6 years, with an average cumulative total return of 339%. Since 1926, it has been a bull market about 86% of the time.

Within a major uptrend or downtrend, several secondary reactions occur against the trend, lasting for a few days, weeks, or even months. Still, they don’t necessarily change the definition of the overall trend.

For example, in the stock market, prices may drop precipitously, even during a powerful bull market, for several weeks at a time. This is known as a “correction.” If the uptrend is still in place, a rally will then ensure.

If a rally movement doesn’t succeed in breaking through the previous high and the market subsequently declines to fall below a previous low, the movement has switched from a bull market to a bear market.

To learn more, download our FREE report, Technical Analysis of Stocks: How Relative Performance Works, Why Trading Volume is Important, and Other Chart-Reading Lessons. 

Read More
3 ETF Clues for Identifying a Market Bottom

3 ETF Clues for Identifying a Market Bottom

June 29, 2022|by Clif Droke

How will we know when the worst of this bear market is behind us? These three ETF clues often telegraph what's to come in the broad market.
Read More

Are Any ARKK Stocks Worth Buying?

Are Any ARKK Stocks Worth Buying?

June 28, 2022|by Brad Simmerman

After an incredible run, Cathie Wood’s fund has given back all those gains. Do these depressed prices make any ARKK stocks buy candidates?
Read More

Why NexPoint Diversified REIT (NXDT) Is My Favorite Stock Right Now

Why NexPoint Diversified REIT (NXDT) Is My Favorite Stock Right Now

June 28, 2022|by Rich Howe

The market may finally be getting healthy. And NexPoint Diversified REIT (NXDT) is the perfect stock for the next big upswing.
Read More

4 Tips on How to Navigate the Bear Market

4 Tips on How to Navigate the Bear Market

June 28, 2022|by Kate Stalter

Want to know how to navigate the bear market? Follow these relatively simple tips I've developed over two decades as a financial advisor.
Read More

Top 5 Commodity Funds by Relative Performance

Top 5 Commodity Funds by Relative Performance

June 27, 2022|by Clif Droke

Commodity funds have been some of the strongest performers this year, and this simple tool can help you identify the best of the best.
Read More

10 Market Rules to Remember in Bad Times – and Good

10 Market Rules to Remember in Bad Times – and Good

June 27, 2022|by Brendan Coffey

Technical analysis legend Bob Farrell has a list of 10 market rules to live by in bull and bear markets. Here's how they can help you.
Read More

2 All-Weather Stocks to Fight Inflation and Recession

2 All-Weather Stocks to Fight Inflation and Recession

June 24, 2022|by Tom Hutchinson

After last week's market turmoil and Fed/economy-related focus, it's time to add some all-weather stocks to your portfolio. Here are two.
Read More

Options for Your Options: Why We Added a Second Options Guru

Options for Your Options: Why We Added a Second Options Guru

June 23, 2022|by Chris Preston

With the addition of Andy Crowder, Cabot Wealth Network now has an options dual threat that gives you wide exposure to any type of trading.
Read More

The $100,000 Reason to Stay Invested in a Down Market

The $100,000 Reason to Stay Invested in a Down Market

June 17, 2022|by Nancy Zambell

It's been a rough six months for investors. But there are reasons to stay invested in a down market. Here are two things you shouldn't do.
Read More

5 Commodity ETFs and Stocks to Hedge Against Inflation

5 Commodity ETFs and Stocks to Hedge Against Inflation

June 14, 2022|by Carl Delfeld

As inflation rises, so are commodity prices. Here are five commodity ETFs and stocks to hedge against a diminished dollar.
Read More

5 Rules for Selling Short in the Stock Market

5 Rules for Selling Short in the Stock Market

June 9, 2022|by Timothy Lutts

With so much uncertainty in the market, today I want to discuss my five commandments for selling short - before you need to use them.
Read More

My First Stock Market Crash

June 9, 2022|by Timothy Lutts

My first stock market crash occurred in 1987, when the Dow fell 22.8% in one day. How we helped Cabot readers get through that crash can help you now.
Read More

4 Common Sense Investing Steps to Weather the Market Sell-off

4 Common Sense Investing Steps to Weather the Market Sell-off

June 3, 2022|by Bruce Kaser

The current market can drive you crazy, and force you to make unwise decisions. Here are four common sense investing steps to keep you sane.
Read More

2 More Inverse ETFs Surging as the Market Falters

2 More Inverse ETFs Surging as the Market Falters

June 1, 2022|by Kate Stalter

As most stocks continue to tumble, inverse ETFs are a good way to actually make money in this market. Here are two more that are soaring.
Read More

What are Negative Enterprise Value Stocks? They’re Rare, but Very Profitable

What are Negative Enterprise Value Stocks? They’re Rare, but Very Profitable

May 31, 2022|by Rich Howe

Negative enterprise value stocks are hard to find. But having outperformed the market by more than 5-to-1, they're worth hunting for.
Read More

Why SPACs are a Safer Bet than Growth Stocks In this Bear Market

Why SPACs are a Safer Bet than Growth Stocks In this Bear Market

May 27, 2022|by Brendan Coffey

SPACs and growth stocks rose in tandem in 2020 and 2021. Now both are struggling in the new bear market. One has more immediate upside.
Read More

Can You Still Own Bond ETFs When Interest Rates Are Rising?

Can You Still Own Bond ETFs When Interest Rates Are Rising?

May 19, 2022|by Cabot Wealth Network

What’s the safest way to own bonds when interest rates rise? That’s a question many investors, especially in bond ETFs, are asking today. Here's my answer.
Read More

2 High-Yielding Bargain Tech Stocks

2 High-Yielding Bargain Tech Stocks

May 19, 2022|by Tom Hutchinson

We don't normally think of technology stocks as being "cheap." But there are a lot of bargain tech stocks out there now. Here are two I like.
Read More

100 to 1 in the Stock Market: The Amazing Mr. Phelps

100 to 1 in the Stock Market: The Amazing Mr. Phelps

May 13, 2022|by Timothy Lutts

Thomas Phelps wrote a book called "100 to 1 in the Stock Market," touting a strategy that can bring you profits of 10,000% or more in stocks. Here's how the strategy works.
Read More

Looking for Early Signs of a Stock Market Bottom? Here’s What to Watch For

Looking for Early Signs of a Stock Market Bottom? Here’s What to Watch For

May 5, 2022|by Mike Cintolo

Looking (hoping?) for signs of a stock market bottom amid this correction? Here are three under-the-radar signs to look for.
Read More

Older Articles

What Can We Help You With?

What Can We Help You With?

As Seen On

As seen on these popular channels

Our Newsletter Updates

Browse Topics

  • Dividend Stocks
  • Emerging Markets
  • ETFs
  • Growth Stocks
  • How To Invest
  • Income Investing
  • Options Trading
  • Personal Finance
  • Precious Metals Investing
  • Real Estate Investing
  • Small-Cap Stocks
  • Stock Market
  • Value Investing

Recent Previews

  • How to Prevent Inflation from Draining Your Wallet!
  • How to Invest During these Inflationary Times—and with a Volatile Market, too!
  • How to Avoid the Biggest Investing Schemes and Rip-Offs!

Latest Videos

Video: Encouraging Signs | Cabot Weekly Review

Upcoming Events

3 Metals Outperforming Gold and the Market

FREE WEBINAR: Thursday, June 30, 2022 at 2:00 PM ET with Clif Droke, Chief Analyst, Cabot SX Gold & Metals Advisor

Space is limited so sign up now for FREE.

Free Reports

  • Essential Guide to High-Probability Trading
  • The 7 Best Places in the World to Retire on a Budget
  • How to Invest in Precious Metals: More Than Just Buying the Best Gold Stock
  • 5 Best Stocks to Buy in June
  • Cabot’s Best Dividend Stocks
  • How Options Work—and How to Hedge Portfolios with Options
  • How to Find Undervalued Stocks
  • How to Invest in Stocks and Other Investing Basics
  • Mortgage Interest Rates: How to Find the Best Interest Rates and Other Tips for Securing Low Mortgage Payments
  • 5 Tips for Making Insurance Work for You
  • Technical Analysis of Stocks

Reviews

  • “I find the people who work at your company honest, hard-working and caring individuals who would truly like their clients to do well.”

    -F. Johnson, Holland, Michigan

Enter Your Log In Credentials

This setting should only be used on your home or work computer.

  • Lost your password? Create New Password
  • No account? Sign up

Need Assistance?

call Cabot Wealth Network Customer Service at

1 (800) 326-8826

  • Manage Account
  • About
  • Contact Us
  • Privacy Policy, Terms of Use, and Premium Service User Agreement
  • Analyst Index
  • Glossary
  • Keyword Index
  • Browse Topics
  • Daily Archive

Copyright © 2022 Cabot Wealth Network
Cabot Heritage Corporation
PO Box 2049
201 Washington Street, Suite 215, Salem, MA 01970 USA
Phone: 1 (800) 326-8826
Email: support@cabotwealth.com

Powered by Mequoda Systems

Subscribe to Our Newsletter

Discover the hottest stocks, investing tips and analysis from Cabot analysts in our free Cabot Wealth Daily newsletter delivered right to your inbox.

Cabot Wealth 50 Plus