Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia. Continue \u00bb<\/a> <\/p>\n History says that’s actually good news for investors. <\/p>\n When the S&P 500 index seems to continue to reach new all-time highs with each passing day, it can be challenging for investors to think about any downside scenarios. However, the best investors understand that the volatility is normal. It’s nothing to be scared of. <\/p>\n That being said, you might be surprised to learn that bear markets aren’t that rare. According to research from Fidelity, they’ve occurred roughly every six years on average over the past 150 years. That’s more common than you might imagine. <\/p>\n The last bear market happened in 2022, when the S&P 500 index dipped 20% over the first half of the year. At that time, investors were worried about surging inflation and rapidly rising interest rates. It wasn’t long until the market came roaring back. <\/p>\n A bear market generally means that the valuations<\/a> of some of your favorite stocks can come down. Investors looking to allocate capital at more compelling entry points will welcome this situation. <\/p>\n However, it’s not easy on your mental state and psychology. While investors always say they prefer down markets before buying stocks, it’s much more difficult when living through these adverse scenarios. There is no shortage of negative headlines about the direction of the stock market and economy that can discourage even the most optimistic investors. <\/p>\n What investors should be doing <\/p>\n Two things can be true at the same time. A bear market is definitely coming at some point. History says this is a fact. On the other hand, no one has any clue when it will happen. The exact timing is the unknown variable. <\/p>\n Either way, there is certainly a group of investors out there who believe one might be on the horizon sooner rather than later. If this sounds like you, then it’s crucial to take some important steps to be prepared for a potential bear market. <\/p>\n The first step is to start building a cash reserve. This action assumes that you’re already moving savings to your investment portfolio. But instead of allocating this capital to stocks, let the cash balance increase. This gives you the financial firepower to act aggressively when company valuations come down. <\/p>\n Another step is to create a list of stocks you’d buy if they became more attractively priced. Finding high-quality businesses isn’t the most difficult thing to do. However, it’s not often that these stocks trade at cheap valuations. It’s critical to know what companies are on your wish list, so you can buy them when the opportunity arises. <\/p>\n The next piece of advice relates to investor mindset. If you do end up buying your favorite stocks during a bear market, don’t just assume that their share prices will immediately start to recover. The market doesn’t work like this. <\/p>\n It’s probable that stock prices will continue to fall even after you’ve added these businesses to your portfolio. It’s impossible to time the dip correctly. Keep this in mind. <\/p>\n Most importantly, don’t ever lose sight of the big picture. This means maintaining a long-term mentality when it comes to your equity portfolio. Real wealth can be achieved in the stock market by being patient and disciplined, while letting compounding do the work. <\/p>\n Should you buy stock in S&P 500 Index right now? <\/p>\n Before you buy stock in S&P 500 Index, consider this: <\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks<\/a> for investors to buy now\u2026 and S&P 500 Index wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $417,413!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!* <\/p>\n Now, it’s worth noting Stock Advisor’s total average return is 950% \u2014 a market-crushing outperformance compared to 212% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of September 13, 2026. <\/p>\n Neil Patel<\/a> has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Getty Images. Bear markets occur more often than you might think <\/p>\n