Every tax planning decision you make is based on how it will impact you with respect to your Marginal tax rate. RSP contributions, taxable investment income, whether to take on that extra income, deductible expenses, etc. All of these decisions require us to first know our Marginal Tax Rate and then, the next significant tax bracket below our current one.
Bear markets are loosely defined as a 20% decline from a peak in an equity index such as the Canadian S&P TSX or the US S&P 500 index. So why are they important?