When it comes to bear markets, investors can take comfort from history, which suggests that where there’s a beginning, there’s always an end.
We don’t know exactly when the bear market will end, but history says we have a few months left to endure after the S&P 500 tumbled into bear market territory last week. And then will come a bull market.
Per history, the average peak-to-trough bear-market decline is 37.3% over a span of 289 days.
A popular definition of a bear market defines it as a 20% drop from a recent high. As of Thursday, the index was off 23.55% from its record close of 4,796.56 on Monday, Jan. 3, 2022.
The important takeaway is to stay disciplined in your approach and philosophy. If we are unable to stick with an investment philosophy in bad times (when we are truly tested), then it’s no philosophy at all. Stay encouraged and let us know if we can help!