The market is unpredictable. You are probably feeling a little anxious about current market volatility and headlines. I am here to reassure you with a few key data points that may put your mind at ease.
- While bear (negative) markets are unavoidable, bull (positive) markets are much longer with larger returns.
- Since 1956, the average bear market has lasted one year two months with a decline of 36%.
- In contrast, the average bull market lasts 5 years 9 months and returns 192%.
- Recoveries from market lows usually take on average 2 years and 5 months.
For long term investors it is important to maintain the proper perspective and look past short-term volatility.