Mutual funds are distributed by Hartford Funds Distributors, LLC (HFD), Member FINRA| SIPC. Put another way, stocks have been on the rise 78% of the time. Of the last 92 years of market history, bear markets have comprised only about 20.6 of those years. Bear markets can be painful, but overall, markets are positive a majority of the time.Although it can be difficult to watch your portfolio dip with the market, it’s important to keep in mind that downturns have always been a temporary part of the process. Assuming a 50-year investment horizon, you can expect to live through about 14 bear markets, give or take.
3 Bear markets often go hand in hand with a slowing economy, but a declining market doesn’t necessarily mean a recession is looming. There have been 26 bear markets since 1929, but only 15 recessions during that time. A bear market doesn’t necessarily indicate an economic recession.2 In other words, the best way to weather a downturn could be to stay invested since it’s difficult to time the market’s recovery. Another 34% of the market’s best days took place in the first two months of a bull market-before it was clear a bull market had begun. Half of the S&P 500 Index’s strongest days in the last 20 years occurred during a bear market.Since 1945, there have been 14-one about every 5.4 years. Between 19 there were 12 bear markets, or one about every 1.4 years. Bear markets have been less frequent since World War II.Though many consider the bull market that ended in 2020 to be the longest on record, the bull that ran from December 1987 until the dot-com crash in March 2000 is technically the longest (a drop of 19.9% in 1990 nearly derailed that bull, but just missed the bear threshold). Every 3.6 years: That’s the long-term average frequency between bear markets.That’s significantly shorter than the average length of a bull market, which is 991 days or 2.7 years. The average length of a bear market is 289 days, or about 9.6 months. However, there have also been 27 bull markets-and stocks have risen significantly over the long term. There have been 26 bear markets in the S&P 500 Index since 1928. 1 By contrast, stocks gain 114% on average during a bull market. Stocks lose 36% on average in a bear market.
A new bull market begins when the closing price gains 20% from its low.
0 kommentar(er)
