February 6, 2020

History of U.S. Bear & Bull Markets Since 1926

Though we have no way of telling what the future might hold, understanding the general market structure and where we are in the current market cycle can help provide a framework for better decision making and future market expectations. The chart below shows the historical performance of the S&P 500 Index throughout the U.S. Bull and Bear Markets from 1926 through 2019. Although past performance is no guarantee of future results, we believe looking at the history of the market’s expansions and recessions helps to gain a fresh perspective on the benefits of investing for the long-term.

The average Bull Market period lasted 6.6 years with an average cumulative total return of 339%.
The average Bear Market period lasted 1.3 years with an average cumulative loss of -38%.

For more information about where we think we are in the current economic cycle and what the future may hold, watch Jim Kruzan’s most recent Capital Market Review.

Source: First Trust Advisors L.P., Bloomberg. Returns from 1926 – 2019.
The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions expressed are those of the author and not necessarily Raymond James. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance.

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