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A San Francisco Apple store
Photo:
josh edelson/Agence France-Presse/Getty Images
Perhaps financial news networks should have advised listeners to sit down before relaying the news that (gasp!)
Apple
Inc. has entered a bear market.
Defined as a drop of 20% or more from a prior peak, bear markets for the entire U.S. stock market are rare—just three in the past 30 years.
But there is almost always a bear market somewhere or in something. At the recent October low, for example, over 40% of stocks in the S&P 500 were in their own bear market. Those included
Ford Motor
Co.
,
Harley-Davidson
Inc.
and
Caterpillar
Inc.—blue chips just as blue as Apple, though with less spectacular returns in recent years. It also includes, as of Wednesday, half of the stock markets in the G-20 when measured in dollars.
As that other apple taught us, what goes up must come down.
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