No one enjoys a bear market – usually defined as a market decline of 20% or more over two months.
But looking back through the history of both the Canadian and U.S.
stock markets, it’s clear that on average, bull markets – an increase of 50% or more in the value of the stock market – last longer and more than make up for the losses during the bear markets. That’s yet another argument for taking the long-term view and staying invested – even when the bear is abroad.
Bull and Bear Markets in Canada since 1955:
Average Bull Market Duration: 79 Months
Average Bull Market Return: 179%
Average Bear Market Duration: 12 MonthsAverage Bear Market Return: -33%
Figures as at December 31, 2015
Bull and Bear Markets in the US since 1950:
Average Bull Market Duration: 98 Months
Average Bull Market Return: 310%
Average Bear Market Duration: 18 Months
Average Bear Market Return: -38%
Figures as at December 31, 2015
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