Yahoo Finance Analysis: Historical data shows that all bear markets share a common characteristic: they are always followed by longer, higher-returning bull markets.
A Yahoo Finance analysis suggests that despite growing concerns about a bear market, such as the "Buffett Indicator" signaling overvaluation and the American Association of Individual Investors reporting 44.4% of investors expect a bear market in the next six months, historical data offers positive signals. The article states that since the S&P 500 Index was established in 1957, every bear market in U.S. history (defined as a broad market index decline of over 20%) has been followed by a longer and more rewarding bull market. For instance, the 31-month bear market after the dot-com bubble burst was followed by a 60-month bull market; and the 17-month bear market after the 2008 financial crisis ushered in the longest bull market in history, lasting nearly 11 years. The analysis emphasizes that bull market returns are typically at least double the losses of the preceding bear market, sometimes even as high as 21 times, indicating that bear markets are usually relatively brief, and investors who hold on will eventually recover their losses and achieve substantial gains.
Source:Yahoo财经 · Source Link
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