Bear Market
Definition
A prolonged decline in stock prices, typically defined as a 20% or greater drop from recent highs.
Explanation
Bear markets occur on average every 3-5 years and last 9-16 months. Since 1929, the S&P 500 has experienced 26 bear markets. The average bear market decline is roughly 36%. Notable bears: 2007-2009 (-56.8%), 2020 (-33.9% in 33 days — the fastest in history), 2022 (-25.4%). Bear markets often coincide with recessions but can occur without one. Recovery times average 2-4 years to reach previous highs.
How Stoquity Uses This
Stoquity incorporates bear market analysis across its portfolio management platform, providing real-time monitoring and AI-powered insights for every portfolio.