Bear market

A bear market officially begins when markets fall 20% or more from recent peaks. The name references how bears attack, swiping their paws downward. These periods can be unsettling, but they're a normal part of investing. During the 2020 bear market, UK firms slashed dividend payouts by 41%, compared to just 12% globally. This shows how spreading your money across different regions can help protect your portfolio.

Learn about market crashes   Read our tips for investors in volatile times

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