![]() ![]() 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. About 42% of the S&P 500 Index’s strongest days in the last 20 years occurred during a bear market.Since 1945, there have been 15-one about every 5.1 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 3.5 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 992 days or 2.7 years. The average length of a bear market is 292 days, or about 9.7 months. However, there have also been 27 bull markets-and stocks have risen significantly over the long term. There have been 27 bear markets in the S&P 500 Index since 1928. 1 By contrast, stocks gain 114% on average during a bull market. Stocks lose 35% on average in a bear market. ![]() A new bull market begins when the closing price gains 20% from its low. Watch for 20%: Market cycles are measured from peak to trough, so a stock index officially reaches bear territory when the closing price drops at least 20% from its most recent high (whereas a correction is a drop of 10%-19.9%). ![]()
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