Bear markets often show up out of the blue and without warning.
Consider the current correction we’re seeing in semiconductor stocks
Both the VanEck Semiconductor ETF and the iShares Semiconductor ETF are roughly 20% off their highs set only around a month ago. A lot of investors thought that artificial-intelligence-driven stocks would keep rising indefinitely. But they’re vulnerable to pullbacks like anything else.
Historically, 20% bear markets in the S&P 500 (SNPINDEX: ^GSPC) happen about once every four years. Losses of 30% or more have occurred around once every 10 years. Every single time, the index has gone on to eventually set a new high.