The Bulls vs The Bears

A Bull Market is when the market shows gains of at least 20% up from the last trough.  A Bear Market is when the market has losses of at least -20% down from the previous peak. But any idea how many Bull Markets there have been compared to Bear Markets in the last 95 years?

Dimensional Fund Advisors researched the S&P 500 total returns from January 1926 to December 2021 and identified 18 Bull Markets compared to 17 Bear Markets.

Of the Bulls, the average timeline in the “length of a bull market” is 55 months with gains ranging from 21% to 936%.  Compared to Bear Markets which averaged about 10 months with losses ranging from -21% to -80%.

You can view Dimensional’s research here, but using this information we can make some informed decisions about investing.

1) First and foremost, there are no guarantees in the markets.  And while informative, past returns do not guarantee future results.

2) With that said, the markets have rewarded investors who were not afraid of downturns and “stayed in” to benefit from the gains.

The choice is yours.  Do you want to be an investor or a trader?

Who do you know that would benefit from this information and would like to learn more about investing?  Please have the connect with us here, & we can help them Redefine Their Wealth.

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