Whenever the stock market goes through extreme ups and downs — as they have so far in 2025 — you’re likely to hear warnings of a coming bear market. Even if current market conditions were normal, you might still hear bear market chatter because Wall Street may be about due for one.
The last S&P 500 bear market happened in 2022 and ran from early January to mid-October, PBS reported. On average, bear markets tend to come around about every 3 1/2 years, according to Hartford Funds.
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Read on for more details about whether a bear market is coming as well as five stocks that may be good to own in one.
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Is a Bear Market Coming?
Based on that timetable, a bear market could be due within the next year or so — but it could arrive even sooner because of market and tariff uncertainty.
In an April interview with TheStreet, veteran fund manager Ken Fisher made the case for a bull market in 2025. But he also said the U.S. will “probably get a bear market and recession” if President Donald Trump’s administration moves forward with a trade war.
The stock market has already seen a correction this year, TheStreet noted. This means there was a decline of at least 10% from recent market highs. A bear market typically happens when stock prices fall 20% from recent market highs, according to Fidelity.
If you’re worried about a bear market, keep an eye on the S&P 500. It’s up only slightly this year thanks to a recent rally. But the index hit a 2025 closing low of 4,982.77 on April 8 — down 19% from its closing high of 6,144.15 on Feb. 19. That kind of extreme dip had many experts sounding the alarm about a coming bear market.
If Wall Street eventually moves into bear territory, some experts recommend gravitating toward large cap stocks with steady profits and an entrenched market position. You could also seek out stocks that pay dividends to have some source of income in a down market.
“Cut the weaker names, and rotate into companies with strong fundamentals,” said Edward Corona, a Florida-based trader and publisher of The Options Oracle Newsletter.
Here are five stocks to consider buying in a bear market, along with a few of their important metrics.
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Alphabet (GOOG)
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Closing price (May 29): $172.96
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Five-year return (through May 29): 142.08%
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Dividend yield (as of March 10): 0.47%
Apple (AAPL)
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Closing price (May 29): $199.95
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Five-year return (through May 29): 151.56%
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Dividend yield (as of May 12): 0.52%
McDonald’s Corp. (MCD)
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Closing price (May 29): $311.86
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Five-year return (through May 29): 67.38%
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Dividend yield (as of May 29): 2.26%
Microsoft (MSFT)
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Closing price (May 29): $458.68
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Five-year return (through May 29): 150.30%
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Dividend yield (as of May 15): 0.72%
Walmart (WMT)
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Closing price (May 29): $97.10
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Five-year return (through May 29): 134.81%
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Dividend yield (as of May 29): 0.97%
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This article originally appeared on GOBankingRates.com: 5 Stocks To Buy in a Bear Market
