Friday, February 6, 2009

Bear market lows and recoveries

As you can see from the chart below, the stock market (as measured by the S&P 500) has historically recorded significant gains after a bear market low.



Dates for market lows are based on a decline of at least 15% in Standard & Poor’s 500 Composite Index. A new decline is considered to have begun after the market recovered 100% of the value lost in the previous decline.