Glossary
Bear Market
A bear market is a sustained decline of 20% or more in a broad market index from its recent peak. Bear markets are typically accompanied by widespread pessimism and reduced economic activity.
Why it matters
Bear markets test investor discipline. Historically, they last an average of 9-16 months and are followed by recoveries that more than make up the losses. Selling during a bear market locks in losses, while staying invested — or even increasing contributions — has historically led to stronger long-term returns.
Example
The S&P 500 dropped 34% in early 2020 during COVID but recovered to new highs within 5 months — investors who sold at the bottom missed the fastest recovery in history.
How Ray helps
Ray keeps your focus on your personal financial picture rather than market headlines. Ask to see your actual account performance in context, not panic-inducing index numbers.
$ ray "how has my portfolio changed in the last 6 months?"Related terms
Bull Market
A bull market is a sustained period of rising prices in financial markets, typically defined as a 20% or greater increase from a recent low.
Diversification
Diversification means spreading investments across different asset classes, sectors, and geographies to reduce the impact of any single investment's poor performance on your overall portfolio..
Dollar-Cost Averaging
Dollar-cost averaging (DCA) is investing a fixed amount at regular intervals regardless of market conditions.
Portfolio
A portfolio is the complete collection of your financial investments — stocks, bonds, mutual funds, ETFs, real estate, and other assets.
Index Fund
An index fund is a type of mutual fund or ETF designed to track the performance of a specific market index, like the S&P 500.