If a Bear Market Is Coming, History Says This Is How Long It Could Take to Recover
Here's what S&P 500 history shows.
Overview
When the S&P 500 (SNPINDEX: ^GSPC) reaches a new high, it's tempting to wonder how much further it can go. And if a bear market -- a drop of 20% or more -- is coming, how long might it take for your portfolio to recover?
First, let's get one thing out of the way: A record high is not, by itself, a reason to expect trouble. Investment firm Dimensional Fund Advisors looked at S&P 500 data from 1926 through 2022 and found that a year after setting a record, the index was higher 81% of the time. It gained an average of nearly 14%.
Details
Of course, bear markets still happen. So what should you expect when one does?
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.