A Bear Market Is Coming at Some Point. History Says That's Actually Good News for Investors.

The S&P 500 index (SNPINDEX: ^GSPC) has been on an incredible run. After 24%, 23%, and 16% gains in 2023, 2024, and 2025, respectively, the closely watched benchmark is up 11% in 2026 (as of Sept. 10). Investors aren't going to complain about four straight years of double-digit returns.

However, the market is always ready to test investors. There's always a chance that a downturn is right around the corner, and the worst part is that it can arrive without any warning. A bear market is coming at some point. Don't worry, though.

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History says that's actually good news for investors.

Bear markets occur more often than you might think

When the S&P 500 index seems to continue to reach new all-time highs with each passing day, it can be challenging for investors to think about any downside scenarios. However, the best investors understand that the volatility is normal. It's nothing to be scared of.

That being said, you might be surprised to learn that bear markets aren't that rare. According to research from Fidelity, they've occurred roughly every six years on average over the past 150 years. That's more common than you might imagine.

The last bear market happened in 2022, when the S&P 500 index dipped 20% over the first half of the year. At that time, investors were worried about surging inflation and rapidly rising interest rates. It wasn't long until the market came roaring back.

A bear market generally means that the valuations of some of your favorite stocks can come down. Investors looking to allocate capital at more compelling entry points will welcome this situation.

However, it's not easy on your mental state and psychology. While investors always say they prefer down markets before buying stocks, it's much more difficult when living through these adverse scenarios. There is no shortage of negative headlines about the direction of the stock market and economy that can discourage even the most optimistic investors.

Two things can be true at the same time. A bear market is definitely coming at some point. History says this is a fact. On the other hand, no one has any clue when it will happen. The exact timing is the unknown variable.

Either way, there is certainly a group of investors out there who believe one might be on the horizon sooner rather than later. If this sounds like you, then it's crucial to take some important steps to be prepared for a potential bear market.