Stock Market Rallies Dow since 1900

The Dow made another all-time record high earlier this week.

So how does the current stock market rally compare to rallies over the past 122 years?

Today’s chart answers that question by presenting the performance of the current rally (orange dot) to other post-major bear market rallies since 1900.

So how does the current rally rank?

While the current stock market rally has been in existence for a relatively short amount of time, at this point it can be considered slightly better than typical (since it is above the gray regression line).

It is worth noting that all but five of the rallies (or 61%) since 1900 ultimately gained more than the current rally so far.

Stock Market Rallies (Dow since 1900)

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.