It’s widely accepted that the U.S. has entered a bear market when a broad market index like the S&P 500 falls 20% or more from its most recent high. While bull markets (when the market improves by 20%) are more fun for many, bear markets offer opportunities you won’t find when the bulls are running.
Chances are, if you’ve been investing for a few decades, you’re intimately familiar with bear markets and understand that they come and go. Still, a bear market can feel scary, especially if you’re counting on your portfolio to help you cover daily living expenses.
Here’s what you need to know the next time a bear market rolls around.