Dow (First Year after a Bear Market Peak)





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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.

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Dow (First Year after a Bear Market Peak)

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.