S&P 500 exits longest bear market since 1948. What stock-market history says about what happens next. (2024)

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S&P 500 exits longest bear market since 1948. What stock-market history says about what happens next. (2024)

FAQs

How much does the market go up after a bear market? ›

The S&P 500 has weathered 29 bear markets since 1928, with stock values decreasing by 36% on average each time. However, there have also been 27 bull markets—typically following the end of a bear market—with stock values increasing by 114% on average.

Will 2024 be a bull or bear market? ›

The S&P 500 soared throughout the year and finally reached a new high in January 2024, making the new bull market official. The onset of a new bull market has historically been a very reliable stock market indicator.

How long does it take to recover from a bear market? ›

As shown above, recovery times vary widely and depend on the economic environment. When bear markets are not accompanied by recession, recoveries from bear markets only took an average of 10 months to reach a new record high.

Did the S&P 500 say goodbye to its longest bear market since the 1940s? ›

If it felt like it took ages for the S&P 500 to climb out of its bear market, that's because it did. The index was in bear market territory, or down 20% from a recent high, for 248 trading days, according to Dow Jones Market Data.

Will the market correct in 2024? ›

The Big Money bulls forecast that the Dow Jones Industrial Average will end 2024 at about 41,231, 9% higher than current levels. Market optimists had a mean forecast of 5461 for the S&P 500 and 17,143 for the Nasdaq Composite —up 9% and 10%, respectively, from where the indexes were trading on May 1.

At what age should you get out of the stock market? ›

There are no set ages to get into or to get out of the stock market. While older clients may want to reduce their investing risk as they age, this doesn't necessarily mean they should be totally out of the stock market.

What is the return of the S&P 500 since 1957? ›

The index has returned a historic annualized average return of around 10.26% since its 1957 inception through the end of 2023.

Do bear markets last as long as bull markets? ›

Bear markets tend to be short-lived.

The average length of a bear market is 289 days, or about 9.6 months. That's significantly shorter than the average length of a bull market, which is 965 days or 2.6 years. Every 3.5 years: That's the long-term average frequency between bear markets.

How long have we been in a bull market? ›

S&P 500 Bull Markets 1957 to 2022
Bull Market PeriodDurationTotal S&P 500 Return
October 2002 to October 200760 months1.015
March 2009 to February 2020132 months4.005
March 2020 to January 202221 month1.144
October 2022 to present10 months0.248
8 more rows
Aug 23, 2023

What was the longest bear market in the S&P 500? ›

According to CFRA data on the S&P 500®, the shortest bear markets lasted about three months in 1987 and 1990. The longest bear market lingered for three years, from 1946 to 1949.

How long did it take the stock market to recover after the 2008 crash? ›

The bounce-back from the 2008 crash took five and a half years, but an additional half year to regain your purchasing power.

How do you profit from a bear market? ›

Bear markets are largely pessimistic ones, so profits can be realised from short-selling in the bear market. They can also come from buying at the bottom of a bear market or a buy and hold strategy, where traders simply wait out the bear market and ride the price rally up.

How long do bear markets last historically? ›

“Without a recession, the average duration of a bear market has been seven months, with a peak-to-trough drawdown averaging -23%.” For context, the 2022 bear market lasted 10 months, and the S&P 500's maximum decline from its high point was 25%.

What was the worst bear market? ›

Among the four, the bear recovery for the 2007 Financial Crisis stands out as the top performer, with a remarkable gain of 235.7%, while the Crash of 1929 lags behind as the worst performer, down 41.7%.

How many times has the S&P 500 dropped 20 percent? ›

Since 1950, the S&P 500 index has declined by 20% or more on 12 different occasions. The average stock market price decline is -33.38% and the average length of a market crash is 342 days.

How far down do bear markets go? ›

The shallowest bear market loss took place in 1990, when the S&P 500 lost around 20%. The deepest by far happened during the financial crisis between 2007 and 2009. We saw the S&P 500 lose approximately 59% of its value in about 27 months. On average, past bear markets have shown a drop of –34%.

Can you still profit in a bear market? ›

Some markets, such as bonds, defensive stocks and certain commodities like gold often perform well in bearish downturns. If you have the risk appetite for it, bear markets may also be an opportunity to short-sell if trading, making a profit if you predict correctly when prices will fall (and make a loss if you don't)

How many years does a bear market last? ›

Bear markets tend to be short-lived.

The average length of a bear market is 289 days, or about 9.6 months. That's significantly shorter than the average length of a bull market, which is 965 days or 2.6 years. Every 3.5 years: That's the long-term average frequency between bear markets.

What is the average return on the stock market last 3 years? ›

Basic Info. S&P 500 3 Year Return is at 20.44%, compared to 32.26% last month and 43.16% last year. This is lower than the long term average of 23.24%. The S&P 500 3 Year Return is the investment return received for a 3 year period, excluding dividends, when holding the S&P 500 index.

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