Runaway inflation and rising interest rates threaten to blunt corporate revenue growth and profitability, so many investors have responded by exiting the stock market. As a result, the S&P 500 and the Nasdaq Composite have fallen sharply this year, tumbling into bear market territory.

It may seem counterintuitive, but economic uncertainty has actually created a buying opportunity for patient investors. Many stocks brimming with potential have seen their valuations implode because of near-term concerns. For instance, shares of PayPal Holdings (NASDAQ: PYPL) and Cloudflare (NYSE: NET) have fallen 76% and 77%, respectively. But both stocks are well positioned to rebound during the next bull market, and a bull market has inevitably followed every bear market in the past.

Here's what investors should know.

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Source Fool.com