How does the current post-major bear market rank?
Today’s chart answers that question by presenting the performance of the Dow one year after a major bear market trough (since 1900).
So how does the current rally compare?
With its one-year anniversary (orange column) just completed, it ranks as the biggest since the Great Depression.
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 major bear market occur?
Since 1900, there have been 14 major bear markets or one every 8 1/2 years on average.