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Schannep Investment Advisors, Inc.
Your future is why we're here.
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Bear vs Bull Markets
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It takes longer than most investors think
to recover from bear markets. There were 14 bear markets (defined as those
periods when the S&P 500 fell at least 20%) between 1929 and 2002. Omitting
the 1929 crash, it took 42.5 months on average to break-even after a crash -
assuming the average investor stayed in the market! |
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Duration |
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Time Needed to |
| Bear Market |
in Months |
% Decline |
Break-Even in Months |
| Sept. '29 |
- June '32 |
33 |
86.7 |
302.4 |
| July '33 |
- March '35 |
20 |
33.9 |
27.6 |
| March '37 |
- March '38 |
12 |
54.5 |
105.6 |
| Nov. '38 |
- Apr. '42 |
41 |
45.8 |
76.8 |
| May '46 |
- March '48 |
22 |
28.1 |
49.2 |
| Aug. '56 |
- Oct. '57 |
14 |
21.6 |
25.2 |
| Dec. '61 |
- June '62 |
6 |
28.0 |
21.6 |
| Feb. '66 |
- Oct. '66 |
8 |
22.2 |
16.8 |
| Nov. '68 |
- May '70 |
18 |
36.1 |
39.6 |
| Jan. '73 |
- Oct. '74 |
21 |
48.2 |
91.2 |
| Nov. '80 |
- Aug. '82 |
21 |
27.1 |
25.2 |
| Aug. '87 |
- Dec. '87 |
4 |
33.5 |
22.8 |
| July '90 |
- Oct. '90 |
3 |
19.9 |
7.2 |
| March '00 |
- Oct. '02 |
31 |
49.1 |
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| Source: Flexible Plan Investments |
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| Past performance does not guarantee
future results. Results are based on the S&P 500 Index. An investment cannot
be made directly into an index. |
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( Return to Investment Primer
Index )
This report is
prepared for general circulation and is for informational purposes only. It
is not intended as an offer or solicitation for the purchase or sale of any
financial instrument or service. Market prices and other data may be
obtained from outside sources and is not warranted as to completeness or
accuracy. Any comments, statements and/or recommendations made herein do not
necessarily reflect those of First Allied Securities, Inc., its subsidiaries
or affiliates, and are subject to change without notice. |
Securities offered through
First Allied Securities, Inc. A register broker/dealer. Member FINRA/SIPC.
Schannep Investment Advisors is a registered investment
adviser in the state of Arizona. First Allied Securities, Inc. does not endorse or
support this web site, nor are they affiliated with Schannep Investment Advisors,
Inc.
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