Seeking Alpha Article Argues Bear Markets Are Beneficial Self-Correcting Mechanisms

The analysis is based on the December 1, 2025 Seeking Alpha article “A Bear Market Is A Good Thing” by Lance Roberts, a veteran with over 25 years of investing experience [1]. The core argument challenges the conventional view of bear markets as catastrophic accidents, instead positioning them as self-correcting mechanisms that reset valuations, teach investor humility, and separate durable companies from ephemeral ones.

Against the backdrop of a 110.25% S&P 500 increase from 2020 to 2025 [0], the article was published amid a 0.88% November 2025 decline in the index [0], making its timing particularly relevant. It references scholarly evidence of “asymmetric causality”—bear markets can trigger recessions, but recessions do not always lead to bear markets—though the exact study supporting this claim was not identified in follow-up searches [1]. The article aligns with a November 17, 2025 Wall Street Journal (WSJ) piece by Spencer Jakab, which similarly argues that extended bull markets foster dangerous investor complacency [2].

1. Timing and Relevance
   : The article’s release during a minor market decline following a 5+ year bull run enhances its resonance, potentially reaching investors starting to question the market’s sustainability [0].
2. Dual Dimensions of Market Behavior
   : It bridges two critical aspects of markets—mechanical self-correction and investor psychology (complacency)—offering a more holistic view than simplistic bear market fear narratives [1][2].
3. Credibility and Unanswered Questions
   : The author’s extensive experience adds weight to the argument, but the absence of a specific scholarly source for the asymmetric causality claim leaves a key empirical detail unsubstantiated [1].

• Risks
  :
  • Misinterpretation
    : If investors overly normalize bear markets without recognizing their potential severity, they may neglect necessary risk management strategies.
  • Unsubstantiated Claim
    : The missing scholarly study limits the empirical foundation of the asymmetric causality argument [1].
• Opportunities
  :
  • Improved Market Literacy
    : The article encourages a balanced view of market cycles, potentially reducing panic during future downturns.
  • Prudent Strategy Shifts
    : Emphasis on capital preservation and valuation reassessment could guide investors toward more resilient portfolios [1].

• Core Argument
  : Bear markets are beneficial self-correcting mechanisms, not exclusively negative events [1].
• Market Context
  : Published after a 110.25% S&P 500 bull run (2020–2025) and a 0.88% November 2025 index decline [0].
• Aligned Views
  : Supports a WSJ perspective that extended bull markets breed investor complacency [2].
• Gaps
  : Exact scholarly study on asymmetric causality not identified; limited late 2025 economic data (e.g., GDP, unemployment) to contextualize the argument [1].