The S&P 500 has officially entered bear market territory. But for long-term investors, the decline in stock prices could be viewed as an opportunity to buy.
The Dividend Aristocrats are a group of 65 stocks in the S&P 500 Index, that have each raised their dividends for at least 25 years or longer.
Bear markets are uncomfortable, but can be much easier to tolerate by owning high-quality dividend growth stocks.
The name ‘bear market’ invokes fear, and for good reason. Market-wide stock declines are called ‘bear markets’.
What is a bear market? Investopedia defines a bear market as
A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining.
The 20% decline threshold is what differentiates a bear market form a mere pullback or market correction. – Pullback: Market loss of 0% to 10% – Correction: Market loss of 10% to 20% – Bear Market: Market Loss of 20% or more
Bear markets send shivers down the spines of timid investors… And for good reason. Seeing the value of your stocks falling is unnerving.
On June 13th 2022, the S&P 500 Index officially entered a bear market. Now, the big question is whether the U.S. economy will enter a recession.