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Dave Harris, of Harris & Associates Highly Regarded Investment Advisor Company, Examines Wall Street's Bear Market Crash

LOS ANGELES, CA, UNITED STATES, June 21, 2022 / — Big swings have become commonplace on Wall Street. Most stocks dipped Tuesday in their first trading after tumbling into a bear market Monday on worries that high inflation would push central banks to clamp the brakes too hard on the economy. The Federal Reserve has signaled it will aggressively raise interest rates to try to control inflation, which is the highest in decades. Throw in the war in Ukraine and a slowdown in China’s economy, and investors have been forced to reconsider what they’re willing to pay for a wide range of stocks, from high-flying tech companies to traditional automakers. Big swings have become commonplace and Monday was no exception.

Dave Harris, Owner of Harris & Associates, a highly regarded Investment Advisor company, states, “Bear markets are a natural part of market behavior. A drop of 20% or more from a recent high defines the bear market. Active traders have been adjusting since the 5% drop in November. Passive traders and most retail or 401k investors suffer the most because they don’t manage their accounts. They become aware of when they have lost significant value in their investments.”

The last bear market happened just two years ago, but this is still a first for those investors who got their start trading on their phones during the pandemic. Thanks in large part to extraordinary actions by the Federal Reserve, stocks have for years seemed to go largely in only one direction: up. But the “buy the dip” rallying cry popular after every market slide has grown fainter — a recent rebound in stock prices was wiped out by a furious bout of selling over the past four days.

Harris continues, “Investment managers fall into the entire spectrum, from do-nothing types using evergreen portfolios designed to reduce volatility and weather all kinds of markets, to aggressive active managers who use inverse investments, options, and other devices to actually make money in a down bear market.”

A bear market is a term used by Wall Street when an index such as the Standard & Poor’s 500, the Dow Jones industrial average, or even an individual stock, has fallen 20% or more from a recent high for a sustained period of time.

Why use a bear to represent a market slump? Bears hibernate, so bears represent a market that’s retreating, said Sam Stovall, chief investment strategist at CFRA. In contrast, Wall Street’s nickname for a surging stock market is a bull market, because bulls charge, Stovall said.

“Who do you trust with your money? If you are afraid to look at your portfolio, perhaps you need a money manager who will actively protect and grow your money,” concludes Harris.


Harris & Associates

Harris & Associates is an independent Registered Investment Advisor and Financial Planning firm focused on delivering ethical advice and personalized advice and plans to all our clients. They are located in the heart of Manhattan Beach where they have been providing solutions to residents of Los Angeles and the South Bay community for over 25 years.

Harris & Associates focuses on their strengths and those who can benefit most from them. Although they specialize in Investment Management, Insurance Consulting, Executive Benefits, and Asset Protection, their true value lies in their experience in providing truly objective advice and fostering deep relationships with their clients through their unique hands-on service.

It is through these relationships and the building of trust that Harris is able to guide their clients to favorable results in all areas of their financial life from taxes to home purchases to retirement planning. They understand that life is unpredictable and circumstances change. Harris & Associates provides clients with ongoing guidance.

Aurora DeRose
Boundless Media Inc.
+ +1 951-870-0099
email us here

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