US is in a Bear Market
2018-12-24, S&P 500 hit a milestone – fell 20% from its 52-week high, entering a bear market.
Markets have stumbled through what is usually one of their best months (December) of the year, with indexes on track for their worst December performances since 1931, during the Great Depression.
If this bear market is anything like the last time, it could take some time to recover.
Since World War II, bear markets on average have fallen 30.4% and have lasted 13 months, according to analysis by Goldman Sachs and CNBC. When that milestone has been hit, it took stocks an average of 21.9 months to recover.
Even when stocks enter “correction” territory, which is defined by at least a 10% drop from a recent high, there’s a long road to recovery. History shows corrections last four months, and equities slide 13% before finding a bottom.
Reference:
- CNBC, Kate Rooney, 2018-12-25, “We are Now is a Bear Market – Here’s What that Means”
