The S&P 500, a benchmark index representing 500 of the largest publicly traded companies in the U.S., is a barometer for the health of the American stock market. When this index enters a bear market—defined as a decline of 20% or more from a recent high—it often stirs investor anxiety. But how long do these bear markets usually last, and what can history teach us about them?
Understanding Bear Markets
A bear market contrasts with a bull market, which represents periods of rising prices and investor confidence. Bear markets can be triggered by various factors including economic recessions, interest rate hikes, geopolitical tensions, or financial crises.
Historical Length of S&P 500 Bear Markets
Since the Great Depression, there have been around 14 bear markets in the S&P 500. The average length of these downturns varies depending on how you define the beginning and end, but here are some common takeaways:
• 📉 Average Duration: Around 9–14 months
• 📉 Median Duration: About 8–10 months
• 📉 Average Decline: Approximately 30–35%
Notable Bear Markets in History|
| Bear Market | Duration | Decline | Key Trigger |
| 1929–1932 (Great Depression) | ~33 months | ~86% | Stock market crash, economic collapse |
| 1973–1974 (Oil Crisis) | ~ 21 months | ~48% | Oil embargo, inflation |
| 2000–2002 (Dot-com Bust) | ~31 months | ~49% | Tech bubble burst |
| 2007–2009 (Global Financial Crisis) | ~17 months | ~57% | Housing market collapse |
| 2020 (COVID-19 Crash) | ~1 month | ~34% | Global pandemic |
Recent Bear Market Example: 2022
The S&P 500 entered bear market territory in 2022 due to rising inflation, aggressive interest rate hikes by the Federal Reserve, and recession fears. The downturn lasted roughly 10–11 months, ending in late 2022 or early 2023 depending on the measure.
What Happens After a Bear Market?
Historically, bull markets last much longer than bear markets. After hitting a bottom, the S&P 500 tends to rebound robustly. On average, within a year of a bear market low, the market has returned over 40%, though this varies.
Key Takeaways for Investors
1. Bear markets are normal: They occur roughly once every 5–6 years on average.
2. They don’t last forever: Most bear markets resolve within a year, and very few last over two years.
3. Time in the market beats timing the market: Trying to avoid bear markets often results in missed opportunities during recoveries.
4. Diversification helps: A diversified portfolio can soften the blow during downturns and position you for recovery.
Final Thoughts
Bear markets are an inevitable part of long-term investing. While they can be unsettling, understanding their typical duration and aftermath can help investors maintain perspective. By focusing on long-term goals and staying disciplined, investors can navigate bear markets with greater confidence and resilience.