{"id":14755,"date":"2025-05-08T02:57:14","date_gmt":"2025-05-08T02:57:14","guid":{"rendered":"https:\/\/finderica.com\/?p=14755"},"modified":"2025-05-08T02:57:14","modified_gmt":"2025-05-08T02:57:14","slug":"protect-your-portfolio-2025-bear-market-guide","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=14755","title":{"rendered":"Protect Your Portfolio: 2025 Bear Market Guide"},"content":{"rendered":"\n
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Suddenly, the term \u201cbear market\u201d is back in the news. <\/p>\n

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The S&P 500 bottomed out around -25%<\/a> in October of 2023. Since then, the U.S. has enjoyed a relative recovery and numerous all-time highs. That is, until the fallout from the April 2025 tariffs and subsequent trade wars triggered \u201c… the worst week for the stock market since 2020, when the Covid-19 pandemic led to global shutdowns and other disruption.\u201d<\/a> Suddenly, the term \u201cbear market\u201d is back in the news.<\/p>\n

What Is A Bear Market?<\/h2>\n

A bear market typically describes a scenario when stocks, on average, drop at least 20% from their previous high. For context, any drop greater than 10% but less than 20% is often referred to as a market correction. Much as losing money typically feels twice as bad as making money feels good, a bear market can generate fear and anxiety among investors watching their retirement savings lose value. Despite the understandable angst, it\u2019s healthy to remember that the stock market isn\u2019t an escalator going straight up. It cuts like a mountain road\u2014curvy and winding with ups and downs. Though it may cause motion sickness, it generally trends higher over long periods.<\/p>\n

Reviewing bear market history can help investors prepare for short-term downturns or prolonged pullbacks that can be particularly tough if accompanied by a recession.<\/p>\n

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Bear markets tend to be short-lived. Bull markets, on the other hand, tend to persist far longer.<\/p>\n

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Bull Length VS. Bear Length<\/h2>\n

Bear markets tend to be short-lived, with the average length since 1929 lasting 9.6 months<\/a>, according to Ned Davis Research<\/a>. Bull markets, on the other hand, tend to persist far longer, with the average being 2.7 years. More recently, three of the last 10 bull markets have surpassed 2,000 days, or roughly 5.5 years.<\/p>\n

Bear markets have been less frequent since World War II. Between 1928 and 1945, there were 12, or roughly one every 1.5 years, but there have only been 15 since, about one every 5.1 years. Calculating these numbers puts the long-term average frequency between bear markets at approximately 3.5 years.<\/p>\n

The average bear market since 1950 has lasted about 11 months, but six of the last eight bear markets ended within just six months. So, while every moment of decline may feel like an eternity, history tells us that markets often recover faster than expected, depending on one significant variable: whether or not the economy enters a recession.<\/p>\n

On average, bear markets without recessions recover in approximately seven months. This number rises to roughly 2.5 years with a recession.<\/p>\n

How Much Do Stocks Typically Drop In A Bear Market?<\/h2>\n
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Historically, some bear markets have been particularly brutal.<\/p>\n

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Stocks lose an average of 35% in a bear market, and the experience can be harrowing for investors. Historically, some bear markets have been particularly brutal.<\/p>\n