Bear market

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A bear market is a market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows. Although figures can vary, for many, a downturn of 20% or more in broad market indexes over at least a two-month period, is considered an entry into a bear market.[1]

Bear markets in US stocks

The following table documents historical bear markets in the United States, as measured by declines in the S&P 500 index.

Historic S&P 500 index bear markets[2][3]
Start date Index level End date Index level Duration (months) Loss
3/6/1937 18.68 4/29/1942 7.47 62 -60.00%
5/29/1946 19.25 6/14/1949 13.55 37 -29.60%
8/2/1956 49.64 10/22/1957 38.98 15 -21.50%
12/12/1961 72.64 6/27/1962 52.3 6 -28.00%
2/9/1996 94.06 10/7/1960 73.2 8 -22.20%
11/29/1968 108.37 5/26/1970 69.29 18 -36.10%
1/11/1973 120.24 10/3/1974 62.28 21 -48.20%
11/28/1980 140.52 8/12/198 102.42 20 -27.10%
8/25/1987 336.77 12/4/1987 223.92 3 -33.50%
4/16/1990 368.95 11/11/1990 295.46 3 -19.90%
3/24/2000 1527.96 11/9/2002 776.76 31 -49.10%
10/9/2007 1565.15 3/9/2009 676.53 17 -56.80%

References

  1. "Bear Market Definition". Investopedia. Retrieved May 5, 2016.
  2. Business history: Trading methods, Retrieved May 10, 2016
  3. S&P 500 (^GSPC), Yahoo finance. Retrieved May 10, 2016

External links