It seems that worries about inflation, higher interest rates and a recession have put Wall Street in the clutches of a bear market. But what does this mean for the typical Main Street investor? When it comes to a bear market, it depends on whether you are a glass half full or a glass half empty type. While it’s probably best people don’t look at their 401(k) at this point, investment pros say there are deals to be had right now that could boost your portfolio in the long run. . With the S&P 500 index down more than 21% on Monday. We have now officially entered a bear market. For those unfamiliar, you enter a bear market when a stock index like the Dow, NASDAQ, or S&P falls more than 20% from its most recent all-time high. “The market is making it clear here that they feel recession is in the cards, whether it’s this coming quarter, the second half of this year, or definitely in 2023,” said RBC Wealth Management financial advisor Brian Kroneberger. Kroneberger said there’s a lot to unpack regarding the new bear market. First, investors need to understand what’s driving it, rising interest rates. “The Federal Reserve’s easy policies and unlimited spending that has been going on in Washington DC for decades, namely the last two years, we need to reverse the principle of the Federal Reserve. has to raise short-term interest rates too much, which will slow the economy and push us into a recession,” Kroneberger said. So what to do with investments? Buy more or sell? Kroneberger said to only sell if it helps you sleep at night or if you absolutely need the money. Otherwise, stay the course, especially with retirement accounts. “For those who are contributing money into their retirement plans, what a great opportunity to invest in stocks that are down 20% to 25%, depending on the index you are looking for. Again, this is the long-term with pensions,” he said. What if you have some extra money that you’d like to invest? I think you’re really looking for value-type companies that pay good dividends and are used to to increase their dividends, so I think we can look at the energy companies here, the consumer-base utilities,” Kroneberger said. Then there is the question of how long this bear market might last. On average, they can take around a year – some complete faster than others. Most financial advisers estimate that the current one could take six to 12 months.