Is the Bear Market Over? #trending

February 27, 2023

Nobody knows what the market will do. Sometimes the market recovers quickly and sometimes it doesn’t. In this highlight, we discuss how you should approach making financial decisions during a bear market.

Want to know what to do with your next dollar (whether the economy looks great… or not so great), you need this free download: the Financial Order of Operations. It’s our nine tried-and-true steps that will help you secure your financial future.


Next up is a question from Ashley. She says the start of the year has been better for the Stark stock market than last year. Do you think the bear market or recession is over, and the recovery has started? If so, what should a financial mutant be thinking about or taking advantage of right now?

I’ll take the first part, and you did the second one. How does that sound?

I don’t know if the bear market is over. No pressure, right? The hard part about markets is that no one knows when bear markets start or stop, or how long they will last. Sometimes the market recovers quickly, and sometimes it doesn’t. On average, coming out of the last few bear markets, in the first month of recovery, the market makes back about 15-14% on average. In the first year of recovery, it makes back about 42%.

If we think about the market hitting a downturn somewhere in the December timeframe and hitting the bottom, the market has made back some of that money. It may have made back about 14% in this first month since that downturn. However, we don’t know when bear markets start or stop, and trying to base your financial decisions around them may be futile.

In light of that, how should someone approach their saving right now? The market is better off this year than it was last year. Have we missed the boat? Should we wait until the next downturn for buying opportunities? I think you have to know that nobody’s going to know where we are in the economic cycle and the recoveries until the historians look back and tell us. We can give you indicators and show you all the historical stats, but here’s a solution I tell people:

Always be buying. You need to create automatic habits that will create success for you, especially if you’re in the wealth-building part of your journey. If you’re 20, 15, or even 10 years from retirement, set it and forget it. Make that plan work. If you’re stressed about this and closer to the retirement date, go stress test that plan so that you can figure out if it has some ramifications. Revisit what your asset allocation looks like and make sure you’re doing it right.

It’s important to have these discussions and create a conversation. But we have the same conversation with clients. If we made money in the fourth quarter of 2022 and are up in the first part of 2023, that’s great. But we don’t know if we get to keep it yet. If you practice what we talk about with knowing what your money’s purpose is, when you need it from a cash flow perspective, and whether you’re in the wealth-building or wealth-keeping part of your journey, you can always be buying as you are on that journey up.

There’s a great quote by Nick Murray that says, “If you think that the market is high right now, wait till you see it in 20 years.” If you can be a financial mutant and compartmentalize that, it doesn’t matter if the market goes up or down tomorrow. What you’re banking on is that when you need those dollars 10, 20, 30, 40, or 50 years in the future, you feel pretty confident they will be worth more than they are today.

For more information check out our free resources here.



Most Recent Episodes

Financial Advisors React to Money Advice from ChatGPT

Will ChatGPT be your new financial advisor? In this react episode, we’ll break down some money advice from ChatGPT and compare it to our own thoughts and opinions. Enjoy the Show? Sign up for the Financial Order of Operation (FOO) Online Course! Sign up for our Know...

Financial Planning 101 (By Age) 2023 Edition

Throughout every decade, there are different areas of your financial life that come in and out of focus. In this episode, we'll discuss what you need to focus on by age, pitfalls to watch out for, and how to know you're doing it right. In this episode, you'll learn:...

Is the 2023 Housing Crash Around the Corner?

Housing prices skyrocketed after the pandemic to all-time highs, and mortgage rates have more than doubled since 2020. Homes are harder to purchase for more Americans, which means it’s more important than ever to make sure you are ready to buy before purchasing. In...

Watch This Before Rebalancing Your Investment Portfolio!

85% of Americans don’t rebalance their 401(k). Are they making a huge mistake? In this episode, we’ll discuss the “why” behind rebalancing, how to do it, and the data on whether or not rebalancing can increase your return. In this episode, you’ll learn: What...

Don’t Make This HUGE 401(k) Mistake!

Americans are making a HUGE mistake in their 401(k) that could cost them thousands by retirement. We’ll talk about why this is happening and how you can avoid making the same mistake in this Q&A episode! For more information on how to make the most out of every...

Alex Hormozi’s Top Money Advice! (Financial Advisors React)

In this episode, we react to Alex Hormozi's financial advice. Enjoy the Show? Sign up for the Financial Order of Operation (FOO) Online Course! Sign up for our Know Your Number Course! Check out our Net Worth Tool! Get FREE downloads full of financial advice from...

Everything You Need to Know About Finances in Your 20s

In this episode, we discuss everything you need to know about finances in your twenties. In this episode, you’ll learn: The top financial advice for your twenties How to start building wealth and the steps you should take Enjoy the Show? Sign up for the Financial...

The Most Valuable Asset in Building Wealth!

This episode will show you how to maximize the most valuable resource you have - starting right at this moment. What is it, you may ask? It’s TIME. If you give your money time to grow, you’ll be amazed at how much your dollars can become - it’s incredible! How wild is...