Bear markets and recessions happen more often than you think

SPENDING money can be delightful. But losing it? If you are watching big chunks of hard-earned savings disappear, losing money can be sheer misery.

That’s why the headlines proclaiming the arrival of a bear market have been so disturbing. Strictly speaking, a bear market is simply Wall Street jargon for a stock market decline of at least 20 per cent. But this is not merely a matter of numbers. The term’s technical meaning doesn’t convey the full human experience.

Really, the fact that we are in a bear market means that a lot of people have already lost a ton of money. Until the momentum shifts, as it eventually will, considerably more wealth will go down the drain. Panicking only makes matters worse. For those who are taking enormous losses for the first time, a bear market can be the shattering of dreams, a time for suffering and grief.