Bears are scary. Bear markets may be even scarier. But just like facing a bear in the wild, knowing what you’re up against and following a well-crafted plan can have a drastic impact on the outcome. Although a bear market is often intimidating, you can navigate through it successfully with the right understanding and strategies. What Is a Bear Market? Generally, a bear market is a period in which stock prices fall by 20% or more from recent highs, using one of the major indices as a benchmark (e.g., S&P 500, Dow Jones Industrial Average). Conversely, a bear market ends once a new bull market begins. That is, when the market’s closing price is 20% higher than its bear market low. Bear markets are somewhat open-ended concepts that could unfold over weeks, months, or even years. For example, a bear market commenced in August 1987, hit its bottom that December (a 33.5% loss), and wouldn’t end until March 1988. This stretch included the infamous Black Monday on October 19, when the market fell almost 23% in a single trading day, which still stands as the