Bear Markets- A Quick Look Back

Original article published: 1/25/2016

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By: ShortMeTina
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I am a firm believer that in order for you to succeed in the stock market, you need to have an understanding of the markets. 

Understanding... ...will lead to a level of comfort playing the markets.  Once you’re comfortable in any situation (in this case, the stock market), you tend to operate better within it. 

​It is then fitting for me to summarize important data points about Bear Markets and Corrections of the past.  This isn’t a deep analysis but rather a condensed view---
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​---A Quick Look Back!

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• ​A Bear Market is defined as a draw down of 20% or more in the major indexes (S&P 500, Dow Jones Industrial, NASDAQ) lasting 2 months or more.
• Different from a Bear Market, a Market Correction is defined as a 10% drop in the major indexes for a duration of less than 2 months. 
• We’ve had 25 Bear Markets since 1929.
• Our Last Bear Market ended in 2009.  It began in 2007 and lasted about 17 months, with a draw down of over 55%. 
• Bear Markets last an average of 10-17 months (under 2 years).
• Our shortest Bear Market since 1929 occurred in 1987.  It lasted only 3 months with a drop of over 30%. 
• Bear Markets occur every 3.4 years (since 1929).
• Bear Markets typically follow Market Corrections.
• We are a few years overdue for a Bear Market, although we’ve had multiple Market Corrections along the way.  And my last point....

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When there’s a turn-around, Bull Markets typically average about 100% return!

​Bank!!!

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Did you miss my article reminding you that Bear Markets present buying opportunities?  If so, find it here.

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Are you interested in making money when stocks go down?  Then be sure to enroll in our course today!