S&P 500 is Now in a Bear Market, How it Stacks Up to Prior Bears By Investing.com

By Investing.com Staff

Unless it rebounds before the close, is now officially in a bear market – which is triggered by a drop of 20%. According to S&P Dow Jones Indices, the bear market started on Jan. 3, 2022, at a price of 4796.56.

Data from the group behind the S&P shows that the prior bull market run from 03/23/20-01/03/22 delivered a return of 114%.

The prior bear market, which lasted from 02/19/20-003/23/20, saw a drop of 33.9%. The 2020 bear market was also the quickest at just 1.1 months. It also was preceded by a 401% bull market and was followed by a 114% bull run.

While it is unclear how long the current bear market will last, data shows we could fall further. The average bear market has seen a drop of 38.2%. The largest bear market was The Great Depression posting an 86.2% drop. The mildest was 1990, showing a 19.9% drop. The Global Financial Crisis bear market that started in 2007 saw a 56.8% drop.

However, once the bear has done its work you are looking at another strong bull run if the data proves true. The average bull market has returned over 177.8%.