How does the current bear market rank?
Today’s chart answers that question by presenting the performance of the Dow one year after a major bear market peak (since 1900).
So how does the current bear compare?
With its one-year anniversary (orange column) two and a half months away, the current drawdown would rank as greater than average.
What is a bear market?
A bear market is typically considered a greater than 20% decline of a major stock market index such as the Dow or S&P 500.
What is a major bear market?
A major bear market is considered a 30% or greater decline of a major stock market index.
What is a stock market correction?
A stock market correction occurs when a major stock market index declines by 10% or more.
How frequently does a bear market occur?
Since 1900, there have been 22 bear markets as measured by the Dow or about one every 5.5 years.