The list of bear market stocks and sectors continues to grow every day showing how broad the continued market selloff has been. As a result, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite are off to their worst start to December in over 37 years. Additionally, more than half of the stocks in the S&P 500 are in a bear market. A bear market is defined as a 20% drop in price from a recent peak; a correction is a 10% drop from a recent peak. FAANG stocks (i.e., Facebook, Apple, Amazon, Netflix and Google) have suffered some of the steepest declines. For example, as of close on December 17, 2018, Netflix was down nearly 40% from its recent peak. Other top S&P 500 companies that area down over 20% from their recent highs are well known brands such as Citigroup, IBM, Wells Fargo, Bank of America, AT&T, and Home Depot. Furthermore, many of the S&P 500 sectors have now entered bear market territory, such as financials, materials and energy.
Gregory B. Simon Law, LLC is a national securities law firm that provides legal services to investors and financial advisors on a wide range of financial industry matters. For more information on the firm, please visit https://www.gregsimonlaw.com.