Just in January of this year, the S&P 500 index set its most recent record. With the entry of Wall Street into the so-called (and feared) ‘bear market,’ the fears of a U.S. recession became way too real this Monday.
But what does Bear Market mean to markets?
The term ‘bear market’ is used when one of two conditions is met. On the one hand, there is the fact that a bad streak on Wall Street accumulates more than two months.
The index in question that met that requirement on Monday was the S&P 500, which with Monday’s fall (of 3.88 %), fell to 3,782 points, its lowest level since January 2021.
Another condition of the ‘bear market’ is that an indicator carries a cumulative fall of 20%, taking as a reference point its previous record. The high of the S&P 500 was recorded this year, just in January, when it reached 4,837 units.
Among the companies listed on this index are names like Apple, Microsoft, Tesla, Amazon, and Meta. among others.
And now that we’re talking about companies, they’ve seen their stocks continue to plummet. So far in the bear market, the value of Meta shares has fallen 50%; in the case of Amazon, 39%, while for Apple, Microsoft, and Alphabet, the loss has been around 25%.
Bear Market over the years
According to Bloomberg data, this is the 15th time the S&P 500 has entered the so-called ‘bear market’ since 1928. The last bear market was recorded in March 2020. On that occasion, the cumulative drop was 33.9%, and the bad streak lasted 33 days, while the current one has a loss of 21.8 percent. And it lasted 161 days.
Both streaks fall short when compared to the worst bear market in the history of the S&P 500, which occurred in June 1932, when the index lost 86.2% in a streak that lasted nearly a thousand days.
What to do?
History says it will probably get worse before it gets better, but real estate investors coming in now could make significant long-term gains.
When traditional stocks and bonds represent a higher risk than their worth as it happens with a Bear Market, investors will benefit from looking at alternative investment options. Real estate is one of the top 4 alternative investment options to stocks and bonds. Thanks to rental income and property appreciation, owning a property can significantly increase your returns while minimizing any risk.
Investing in Mexico Real Estate
While property prices in the U.S. or Canada may limit what you can get for your money, in Mexico real estate can offer higher quality for less money.
Mexico real estate is massively benefiting from a remarkable tourism industry. Furthermore, coastal areas such as Riviera Maya, Los Cabos, and Puerto Escondido have shown a strong tendency towards continued development and conservation. The amazing properties in beautiful locations of Mexico can offer between 8-14% ROI through rental income alone and property appreciation. Mexico real estate has a lot to offer if you’re looking for a low-risk, profitable place to secure your money.
Contact one of our Top Mexico Real Estate representatives to know more about our properties. And remember…At Top Mexico Real Estate… We make it happen!