Ken Morris: Running from a bear only makes sense in the woods – Southgate News Herald | Mega Mediakw

There are a number of different measurement indices that are used to measure the direction of the investment world. One of the broadest indices is the S&P 500, which is a weighted average of 500 stocks.

The S&P does not contain 500 equal slices of the pie. Technology stocks make up the largest sector of the index, while utilities make up the smallest sector. Hence the weighted designation.

On June 13, the S&P 500 Index was down 20 percent from its peak.

That put us in bear market territory. Bear markets are nothing new in the investment world. You should never be shocked or overreact when we walk into one.

The most recent bear market began in February 2020 when the index fell 33 percent. Coincidentally, it only lasted 33 days. Going back further, in March 2000 it fell 49 percent and lasted 929 days. And in October 2007 we had a 517 day bear market that fell 56 percent

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