25 Jun Research Brief: A Synopsis of Historical Bear Markets
On June 13th, the S&P 500 Index declined nearly 4% and finished the day down approximately 22% from its all-time high closing level from early January 2022. Thus, the S&P 500 officially entered bear market territory (defined by a 20% decline from an all-time high). In this brief analysis, I look back at historical bear markets since WWII to provide historical context on how the stock market has fared following the start of past bear markets. Specifically, I sought to address a variety of key questions that are no doubt on the minds of investors today:
- How much longer does it typically take for the market to bottom out?
- How much further does the market typically decline?
- How long does it typically take for the market to reclaim its prior peak?
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