Page 46 - July 2022 Issue.indd

How Should You • Be patient. It can be challenging to look at
your investment statements during these
Respond to a days. But you’ll help yourself by taking a long-

Bear Market? term view. Consider this: From March 2009
until the end of 2021, the Dow Jones Indus-
Submitted by Ann Jacobs, Financial Advisor, trial Average gained more than 460%. So, if
you’ve been investing for a while, compare
Edward Jones - Denton 410-479-0271
where you are now to where you were 10 or
12 years ago. You’ve probably made pretty
So far, 2022 has not been a good year for investors. In fact, we’re moving good progress over this time – and 10 years
into bear market territory. What should you know about bear markets? from now, the current downturn may not
And how should you respond? look like such a big event, either.
To begin with, a bear market occurs when a stock market index, such as • Review your risk tolerance. If you’re having
the S&P 500, falls at least 20% from its most recent high point. You might a hard time coping with investment losses
think this type of drop is rare, but that’s not actually the case. Historically, – even if they’re just “paper losses” for now
bear markets have occurred every few years and are a normal feature of – you may want to review your tolerance for
the investment landscape. We experienced a bear market fairly recently, risk and see if it’s still the same as it was when
from mid-February 2020 through late March of that same year. you began investing. Even without a bear
market, people’s risk tolerance can change,
What causes bear markets? Each one is diff erent, but the current one
especially as they approach retirement.
is largely the result of several factors, including high infl ation, rising
interest rates, the war in Ukraine and global supply chain problems. • Review your goals. A bear market is not
meaningless, but by itself, it shouldn’t cause
When will the financial markets again start moving in a positive direc- you to change your long-term goals. And if

tion? No one can say for sure, but in any case, it’s not really a good idea your goals haven’t changed, neither should
to make investment decisions based on what may happen next in the your investment strategy.

financial markets. Instead, consider these moves:
• Look for buying opportunities. During a down

market, you can find quality investments
> edwardjones.com | Member SIPC at attractive prices. So, you could take this
opportunity to fill gaps in your portfolio or

add shares of investments that you already
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Call or visit your local financial advisor today.
and Edward Jones. And getting professional
Ann M Jacobs, AAMS® help may provide the same type of reassur-
Financial Advisor ance during the current market turmoil.
105 Franklin St
Denton, MD 21629-1207 A bear market is never enjoyable. But taking the
410-479-0271
long view and making moves appropriate for your
needs can help you get through this period and look
* Annual Percentage Yield (APY) effective 05/19/2022. CDs offered by Edward Jones are
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visit www.fdic.gov or contact your financial advisor for additional information. Subject to This article was written by Edward Jones for use by your local
availability and price change. CD values are subject to interest rate risk such that when interest Edward Jones Financial Advisor. Edward Jones. Member SIPC.
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