Equities

The Power of the Bull

August 8, 2018
Historically, bull markets last nearly four times as long as bears.

Key Points

  • The duration and magnitude of individual bear markets have varied significantly.
  • Exiting the markets to avoid a potential downturn may negatively influence your returns over time.
  • A long-term view can help you achieve investing success.

When you think about bull and bear markets, it’s easy to assume that they both last for roughly the same amount of time. But history tells a different story—since 1926, on average, bull markets have lasted 82 months, while the average duration of a bear market has been just 23 months.*

Beyond the averages, the duration and magnitude of individual bear markets have varied significantly. Instead of worrying about when a bear will show up, or how long it will last, consider taking the long-term view with your portfolio.  

Average annual returns of the S&P 500 Index and, prior to 1974, the Morningstar SBBI Large Stock Index.

*Data from FactSet; analysis by T. Rowe Price.

All investing is subject to risk, including possible loss of principal.