Do Federal Reserve Rate Cuts Signal Bear Market Bottoms? Here's What History Says
What a difference a year makes! Last year featured minimal stock market volatility, with the broad-based S&P 500 (SNPINDEX: ^GSPC) retracing no more than 5% at its peak. In 2022, all three major indexes have plummeted into a bear market, with the ageless Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500, and growth-focused Nasdaq Composite (NASDAQINDEX: ^IXIC) plunging by as much as 22%, 28%, and 38%, respectively, from their all-time highs.
On one hand, double-digit percentage declines in the stock market have always represented a buying opportunity for patient investors. Nevertheless, it can be trying on investors -- especially newer investors -- to deal with wild bear market price swings. It rightly has people wondering when and where the bear market will bottom.
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Source Fool.com
