Understanding market downturns.
For prepared investors, market downturns can represent great opportunity.
Nearly everywhere you turn, from friends and colleagues to cable news shows, you can find someone with a strong opinion about the financial markets. People will often use specific terms such as bear market to render judgments about the direction of markets, especially when market performance is choppy or trending down.
Is it worth getting concerned when markets stop or even reverse their upward advance?
To answer that, it’s important to realize that downturns are not rare events: Typical investors, in all markets, endure many of them during their lifetimes.