No one enjoys a bear market – usually defined as a market decline of 20% from recent highs. But looking back through the history of the U.S. stock market, it’s clear that on average, bull markets – usually defined as a sustained period of rising markets – last longer and more than make up for losses incurred during bear markets.
This is one more reason to focus on the long term and stay invested – even when the markets are going through a rough patch.
Bull and bear markets in the U.S. since 1950
Source: Bloomberg, as at December 31, 2024.
Cumulative return – The total amount an investment has gained or lost over a specified period of time.
For definitions of technical terms in this piece, please visit iaclarington.com/glossary and speak with your investment advisor.
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