I'm Not Worried About a Bear Market in 2026. Here's Why.

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Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTBen Gran, The Motley FoolWed, September 9, 2026 at 1:50 PM GMT+2 5 min readThe S&P 500 index (SNPINDEX: ^GSPC) is up about 13% year to date, 19% in the past year, and 73% in the past five years. But many investors are wondering when this bull market will come to an end.Indeed, stock prices don't go up forever. Something always happens that causes stock markets to go into a downturn. But no matter what happens next in the economy or the stock market, I'm not worried about a bear market in 2026. Even if stocks take a tumble, even if artificial intelligence (AI) turns out to be an overhyped dot-com-style bust, I'm going to keep investing.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Even if there's a big 2022-style stock market downturn or a years-long bear market starting in 2026, I'm not worried. Here are a few reasons why.Image source: Getty Images.1. Bear markets mean stocks are on saleMany younger investors might not have experienced a prolonged downturn in the markets. Try not to overreact when it happens. I've lived through a few big booms and busts during my investing lifetime. Even though it feels scary along the way, those lower share prices during bear markets are ultimately "good news" for younger investors who have a long time horizon for their money to grow.Bear markets offer you a 20% discount (or more) on stocks. Think of it like this: Let's say you want to invest in a low-cost index fund, like the Vanguard Morningstar Total Stock Market ETF (NYSEMKT: VTI). As of this writing, the market price of this exchange-traded fund (ETF) was about $380 per share. If stocks enter a bear market, it means a decline of at least 20% in share prices. So VTI's shares would drop to about $304.Let's say you use dollar-cost averaging to invest in stocks each month with the same number of dollars per month. If you invest $600 per month, today that dollar amount would buy you about 1.6 shares of VTI (at $380 per share). But during a bear market, when VTI shares are "on sale" for $304, that same $600 investment would buy about two shares of the total stock market fund. The same number of dollars buys you a larger number of shares.2. Stock prices (so far) always bounce backBear markets can be scary. It might feel like the stock market is falling apart, like your life savings will disappear, like no one will ever buy stocks again. But that's not reality. Stock market history shows us that eventually, the momentum will turn. Investors will start buying stocks to take advantage of those discounted share prices. The market will sort out whether shares are overvalued. New winners get picked, while losing stocks fall away.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info