1. Which is more common: a bull market or a bear market?
Bull markets are more common. Bull markets have occurred for 78% of the past 91 years.1
2. What typically lasts longer: a bull market or a bear market?
A bull market usually lasts longer than a bear market. Average bear market: 289 days (9.6 months). Average bull market: 991 days (2.7 years).2
3. True or False: Over the last 20 years, 56% of the S&P 500’s strongest days happened during a bear market.
True. In contrast, 34% of the S&P 500’s strongest days happened during the first 2 months of a bull market, before it was clear that a bull market had even started.2
4. Bear markets have been happening ___________ since World War II (1945).
Less Frequently. From 1928 to 1945, there were 12 bear markets with one occurring about every 1.4 years on average. Following 1945, there have been 14 bear markets. That’s one every 5.4 years or so, on average.2
5. Over the long term, a bear market occurs every ______ years, on average.
A bear market occurs every 4 to 6 years.1,2
6. What’s the best thing to do in a bear market?
It depends on your circumstances, risk tolerance and goals.
7. What’s the worst thing to do in a bear market?
It depends on your circumstances, risk tolerance and goals.
Be prepared! It can be easy to forget the facts when markets get volatile. If market changes come out of nowhere, even the smartest folks can get impulsive and make short-sighted financial decisions.
References:
1-https://www.forbes.com/advisor/investing/bear-market-vs-bull-market/
2-https://www.hartfordfunds.com/dam/en/docs/pub/whitepapers/CCWP045.pdf
Financial Journey LLC is a registered investment advisor offering advisory services in the state of Virginia and in other jurisdictions where exempted. Information provided is for educational purposes only and not, in any way, to be considered investment or tax advice.
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