When people speak of a "bear market," they mean a period of months or years during which the stock market declines by at least 20 percent from a previous high. We didn't hear much about bear markets in the 1990s because the U.S. stock market was performing so well (a "bull" market). For over a decade, the market enjoyed an unprecedented period of rising prices, hefty profits and general excitement that, for the most part, kept the bears hiding in their caves. As a result, many investors (even those who have been in the market for 10 years) now lack the perspective that comes from experiencing an extended down period in stocks.

Welcome to the Bear's Cave, where you will discover some of the principles of bear markets, understand why you should be prepared for them and learn how you can spare yourself the worst of stock market declines.