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How Long Do Bear Markets Last?
With the S&P 500 now officially in a bear market (down 20% from its peak in 5 months), we took a look at the sizes and durations of past bear markets.
The Global Financial Crisis (2008) and the Dot Com bubble (2000) each saw the index falling by 50% or more, and it took 4 years or longer for the prior peak to be regained.
However, most other bear markets had been smaller and had lasted less tie. Out of the 9 bear markets since 1980, 4 involved peak-to-trough declines of just under 20% (the average for all 9 is 31%), and 6 saw the S&P 500 regained its prior peak less than half a year after the trough (the average is 1.4 years).