You may have spotted recent headlines suggesting the US is officially in bear market territory, and wondered what that means and where we all go next.
Technically, the answer is easy. A bear market happens when an index falls 20 per cent from its peak, which is what the S&P 500 has now done.
On January 3, the index of top US stocks hit an all-time high of 4,796.56, but by June 16 it had fallen to 3,666.77, a drop of 23.55 per cent.
Europe has also slipped into bear market territory, with the Euro Stoxx 50 down 20.79 per cent since January 5.
But what does that mean for you?
It does not mean that your investments will have fallen by the same amount if you did the wise thing and built a balanced portfolio that contains bonds, cash, shares, gold, commodities and other asset classes.
Yet, you will almost certainly be poorer as 2022 has been a bad year for bonds and a disappointing one for supposed safe-haven gold, too.
If you went big on Bitcoin, which is down two thirds from its November peak, you will be really hurting. The same goes if you banked your future on electric car maker Tesla, which is down 41.22 per cent this year, or streaming service Netflix (down 69.58 per cent).
The war in Ukraine, energy shortages, rocketing inflation and rising interest rates are driving today’s bear market.
After the “everything rally” of the past few years, we are now witnessing an “everything sell-off”, says Arnab Das, global market strategist for the Europe, Middle East and Africa region at fund manager Invesco.
“It has now turned into one of the shortest, steepest and fastest reductions in wealth in ages, which calls for a bit of a rethink.”
As markets go into reverse, your own portfolio may have to adapt, too. “The time for concentration in long-dated growth, tech and US exposure may have passed,” he says.
Big US tech has driven the bull market of the past decade or so and it is also driving today’s bear market.
Resource-heavy “old economy” sectors such as oil, gas and coal miners have swung back into favour this year, but now that trend may soon be played out, so resist the temptation to start chasing it today.
What happens next depends on how central bankers respond and, in particular, the US Federal Reserve.
On June 15, the Fed raised its benchmark interest rate by 0.75 per cent, in its most aggressive hike since 1994. Markets anticipate a slew of further rate hikes in the months ahead, which should curb inflation but at the expense of possibly dragging the US (and the rest of the world) into recession.
With luck, that will slow energy price growth and ease supply shortages, calming inflation and reducing the danger of a wage-price spiral, Mr Das says.
This process could happen faster than people think. If so, the bear market could be short and sweet.
Given the uncertainty, investors should resist the temptation to become too risk averse, but should strike a balance between protecting their wealth against resurgent inflation, while retaining exposure to a potential growth stock recovery as well.
Now that everything has sold off — aside from energy stocks — this is not the time to abandon risk altogether, Mr Das says. “Investors should aim for portfolio balance and diversification rather than full-blown bearishness.”
Investors should aim for portfolio balance and diversification rather than full-blown bearishness
Arnab Das,
global market strategist at Invesco
Bear markets do not run to a set timetable, history shows. Some are over in a few months, while others drag on for years, says Chaddy Kirbaj, vice director at Swissquote Bank.
“The 2011 bear market lasted just five months, from May to October, whereas the bear market after the dot-com crash ran for 31 months, from March 2000 to October 2002.”
Yet, all bear markets do have one thing in common: they do not last forever. After a time, sentiment improves, which means it pays to be patient, stay calm and avoid panic selling, Mr Kirbaj says.
You may also have to raise your game as the era of easy money, in the shape of near-zero interest rates and endless stimulus, is now over.
Instead of chasing the latest growth stock buzz, you need to dust off your stock-picking skills and examine company fundamentals instead. “Investors should turn their focus to companies with attractive valuations, strong business models and healthy balance sheets.”
Now is a good time to buy solid, well-run companies as valuations look fair and affordable compared with at the start of this troubled year, Mr Kirbaj adds.
This year’s dip makes now a good time to go shopping for shares, says Hamzeh Ajjour, group chief executive and co-founder of online brokerage 4T.
“Bear markets often provide opportunities to purchase good solid companies with great balance sheets at discounted prices,” he says.
“If your new year’s resolution was to build a stock portfolio, there is now an opportunity for you to do so 20 per cent cheaper.”
This may sound risky, but he argues: “If you have done your homework and analysis on why a particular company is worth investing in, then its value going down should not worry you because it means it is undervalued, giving you the opportunity to buy low.”
Today’s bear market is following a huge boom and stock markets are still trading above pre-Covid pandemic highs, Mr Ajjour says.
So, despite this year’s dips, most investors are still richer. “Avoid panicking over headlines and look at the wider picture,” he says.
While it may look grim and could get worse, this is no time to despair, says Paul Danis, head of asset allocation at wealth manager Brewin Dolphin.
“Equities are now much closer to the bottom of the bear market than they are to the cycle highs, we believe.”
Previous S&P 500 bear markets were of similar in magnitude to this year’s downside, suggesting the worst may already be over. “Even if we are heading for a recession, a lot of the bad news is arguably priced in.”
Mr Danis reckons global markets will start to look attractive if they fall another 5 per cent or so from here. “Longer-term investors with excess cash and the appropriate risk tolerance may want to think about trickling a portion of their money into the market now.”
The time to get really aggressive will come if the global economy enters a recession. History shows the stock market recovery typically gets under way three or four months before the economy starts to grow again.
In the longer run, shares are likely to outperform competing assets such as cash and bonds, but by a smaller margin.
Ageing global populations, the debt overhang and higher interest rates means investors cannot expect a repeat of the last dazzling decade, Mr Danis cautions.
“Longer-term equity returns will likely be weaker than investors have enjoyed over the past 40 years.”
The current bear market will eventually run its course — and maybe sooner than you think. Just do not assume that the next bull market will be as fun as the last one.
It will have to be built on proper economic fundamentals, rather than endless monetary and fiscal stimulus. And it will be all the better for it.
'Ashkal'
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Results
5pm: Maiden (PA) Dh80,000 (Turf) 2,200m; Winner: Gurm, Antonio Fresu (jockey), Eric Lemartinel (trainer)
5.30pm: Handicap (PA) Dh80,000 (T) 1,600m; Winner: Al Nafece, Al Muatasm Al Balushi, Mohammed Ramadan
6pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 1,200m; Winner: Ashton Tourettes, Adrie de Vries, Ibrahim Aseel
6.30pm: Arabian Triple Crown – Group 3 (PA) Dh300,000 (T) 2,200m; Winner: Ottoman, Adrie de Vries, Abdallah Al Hammadi
7pm: Liwa Oasis – Group 2 (PA) 300,000 (T) 1,400m; Winner: Hakeemat Muscat, Szczepan Mazur, Ibrahim Al Hadhrami
7.30pm: Handicap (TB) Dh80,000 (T) 1,600m; Winner: Ganbaru, Antonio Fresu, Musabah Al Muhairi
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
RACECARD
6pm Emaar Dubai Sprint – Conditions (TB) $60,000 (Turf) 1,200m
6.35pm Graduate Stakes – Conditions (TB) $100,000 (Dirt) 1,600m
7.10pm Al Khail Trophy – Listed (TB) $100,000 (T) 2,810m
7.45pm UAE 1000 Guineas – Listed (TB) $150,000 (D) 1,600m
8.20pm Zabeel Turf – Listed (TB) $100,000 (T) 2,000m
8.55pm Downtown Dubai Cup – Rated Conditions (TB) $80,000 (D) 1,400m
9.30pm Zabeel Mile – Group 2 (TB) $180,000 (T) 1,600m
10.05pm Dubai Sprint – Listed (TB) $100,000 (T) 1,200m
Most sought after workplace benefits in the UAE
- Flexible work arrangements
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- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
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Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
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Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
Volvo ES90 Specs
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Three-day coronation
Royal purification
The entire coronation ceremony extends over three days from May 4-6, but Saturday is the one to watch. At the time of 10:09am the royal purification ceremony begins. Wearing a white robe, the king will enter a pavilion at the Grand Palace, where he will be doused in sacred water from five rivers and four ponds in Thailand. In the distant past water was collected from specific rivers in India, reflecting the influential blend of Hindu and Buddhist cosmology on the coronation. Hindu Brahmins and the country's most senior Buddhist monks will be present. Coronation practices can be traced back thousands of years to ancient India.
The crown
Not long after royal purification rites, the king proceeds to the Baisal Daksin Throne Hall where he receives sacred water from eight directions. Symbolically that means he has received legitimacy from all directions of the kingdom. He ascends the Bhadrapitha Throne, where in regal robes he sits under a Nine-Tiered Umbrella of State. Brahmins will hand the monarch the royal regalia, including a wooden sceptre inlaid with gold, a precious stone-encrusted sword believed to have been found in a lake in northern Cambodia, slippers, and a whisk made from yak's hair.
The Great Crown of Victory is the centrepiece. Tiered, gold and weighing 7.3 kilograms, it has a diamond from India at the top. Vajiralongkorn will personally place the crown on his own head and then issues his first royal command.
The audience
On Saturday afternoon, the newly-crowned king is set to grant a "grand audience" to members of the royal family, the privy council, the cabinet and senior officials. Two hours later the king will visit the Temple of the Emerald Buddha, the most sacred space in Thailand, which on normal days is thronged with tourists. He then symbolically moves into the Royal Residence.
The procession
The main element of Sunday's ceremonies, streets across Bangkok's historic heart have been blocked off in preparation for this moment. The king will sit on a royal palanquin carried by soldiers dressed in colourful traditional garb. A 21-gun salute will start the procession. Some 200,000 people are expected to line the seven-kilometre route around the city.
Meet the people
On the last day of the ceremony Rama X will appear on the balcony of Suddhaisavarya Prasad Hall in the Grand Palace at 4:30pm "to receive the good wishes of the people". An hour later, diplomats will be given an audience at the Grand Palace. This is the only time during the ceremony that representatives of foreign governments will greet the king.
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
EPL's youngest
- Ethan Nwaneri (Arsenal)
15 years, 181 days old
- Max Dowman (Arsenal)
15 years, 235 days old
- Jeremy Monga (Leicester)
15 years, 271 days old
- Harvey Elliott (Fulham)
16 years, 30 days old
- Matthew Briggs (Fulham)
16 years, 68 days old
What to watch out for:
Algae, waste coffee grounds and orange peels will be used in the pavilion's walls and gangways
The hulls of three ships will be used for the roof
The hulls will painted to make the largest Italian tricolour in the country’s history
Several pillars more than 20 metres high will support the structure
Roughly 15 tonnes of steel will be used
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Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
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