© 2020 KASU
webBanner_6-1440x90 - gradient overlay (need black logo).png
Your Connection to Music, News, Arts and Views for Over 60 Years
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations

Beware The Bear Market? Here's Why Not To

With the Dow Jones industrial average and other market indexes , the very definition of a "bear market," there's understandably a fair amount of concern among investors and everyone else who watches the economic indicators.

Update at 4:31 p.m. ET: Stocks rallied late Tuesday, sending the S&P 500 Index up 4.1 percent in the last 50 minutes of trading. Earlier, the index had fallen below the 20 percent threshold that denotes a bear market. Our original post continues:

Our colleague Jacob Goldstein over at The Planet Money blog, though, points out that that there are reasons why " the bear market may be good for your 401(k)."

As he says, "if you're a decade or more from retirement, you may ultimately benefit from the recent decline in prices. The bear market means that something you buy every month — stocks — just got a lot cheaper. And every dollar you sock away in your retirement fund today gets you a bigger share of all those future profits."

So, a little bit of optimism about otherwise dreary news.

Copyright 2020 NPR. To see more, visit https://www.npr.org.