In 2022 stock investors suffered their worst start to a year since 1970, with the S&P 500 falling 21 percent during the first half of 2022. The widely tracked stock market index fell into bear market territory on June 13 after closing more than 20 percent below its high reached in early January.
The market has since recovered slightly, but for investors, there’s been no shortage of things to worry about. Rising interest rates, high inflation, the war in Ukraine and a possible recession are just some of the risk factors that markets have focused on this year.
After the tumble into bear market territory, stock investors are trying to gauge how much lower prices may fall or if the worst is behind them. While no one can answer those questions definitively, looking at past bear markets may offer clues about how this one may unfold.
