A bear market occurs when there is a 20% or more continuous fall in the stock market from peak levels.
The onset of the most recent bear market this 2022 has been a worrying season for many, particularly when the S&P 500 plunged into bear territory in the week of June 13, notes Tina Fong, strategist at Schroders in a June 23 report.
Moreover, the Fed raised interest rates by a further 75 basis points (bps) on June 16, which is the biggest move since 1994. The increase in rates led a round of hikes from central banks around the world as the Swiss National Bank hiked their rates by five bps and the Bank of England by a further 25 bps.
