Understanding a bear market

ROCKFORD, Ill. (WIFR) - Many people may be worried about their retirement funds and everyday expenses after the stock market opened Tuesday with the S&P 500 in a bear market.

A bear market refers to when a stock index takes a steep decline, more than 20% from its peak. Since January’s record, the S&P is down more than 21% for the first time since 2020. Anchor Wealth Management CEO Financial Advisor Adam Ludwig advises investors to avoid panic and stay the course.

He says you don’t want to sell low and buy high.

“It’s going to come back, when it does recover, if you did not like this experience, the key is we should have that conversation and make adjustments,” Ludwig said. “But don’t make adjustments when we’re locking in these losses on really - values that are just on paper.”

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