By now, many of us have heard that we are in a bear market. Last week, the Standard & Poor's 500 Index registered a drop of more than 20% from a recent high - the technical definition of a bear. What does it mean? How long do bear markets last? How should we "play" the bear?
I'm going to suggest things are not as bad as they may seem. I will show that stocks have always come back - though not necessarily quickly and not without pain. Of course, this time may be different; but, I will assume that things will recover at some point.
I look back at average lengths and depths of bear markets. Averages, of course, are just that - our current experience could be much worse or much better than average.
I will suggest using the "Four R's": Relax, Review, Re-Balance, Repeat.