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It's possible to profit from patience

Market recoveries often follow corrections.

February 2026

It’s nearly impossible to time the market and identify its peaks and troughs. If history is any guide, short‑term drops in the stock market are typically followed by longer‑term rallies.

Stay invested for market recoveries

The graph below shows that after market corrections (defined as a drop of at least 10%), the stock market typically recovered lost ground after three to six months. For three of the four bear markets (defined as a drop of at least 20%), stocks were back to their prior levels within a year.

Recent bear markets and corrections

(Fig. 1) Following a drop of at least 10%, the stock market historically has recovered within three to six months. After a drop of at least 20%, which indicates a bear market, recovery occurred within four years.
Line chart shows how the market has historically recovered after a drop of 10% or more.


Occured between January 2005 and December 2025.
Reflects an investment of $1,000 on December 31, 1991. There were no corrections or bear markets between 1991 and 1999. This graph does not show the bear market of the tech bubble crash(2000–2002) or correction period pre‑Iraq war (2002–2003). Drop is based on the percentage drop from the highest market index value just prior to the correction to the lowest market index value. Recovery is defined as the length of time for the market to return to the previous highest market index value, rounded to the nearest number of months.
Past performance cannot guarantee future results. Index performance is for illustrative purposes only and is not indicative of any specific investment. Investors cannot invest directly in an index.
Sources: T. Rowe Price and S&P. See Additional Disclosure.

 

 

Recent bear markets and corrections

(Fig. 2) The square icon indicates bear markets and the triangle icon indicates all other events.
Table shows statistics of bear markets in history and recovery periods.

January 2005 and December 2025.
Drop is based on the percentage drop from the highest market index value just prior to the correctionto the lowest market index value. Recovery is defined as the length of time for the market toreturn to the previous highest market index value, rounded to the nearest number of months.
Past performance cannot guarantee future results. Index performance is for illustrativepurposes only and is not indicative of any specific investment. Investors cannot invest directlyin an index.
Sources: T. Rowe Price and S&P. See Additional Disclosure.

 

Don’t let near-term volatility derail your long-term plan
Market volatility is a given. Steep downturns can be disconcerting, and they may heighten anxiety among some investors. If the stock market’s historical trends hold true, a patient investor who outlasts short‑term volatility can benefit over the long term.

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