The current bear market is the 27th since 1928. It began on 1/3/22 and, as of December 8th, is the 15th longest bear market in history. It was confirmed as a bear market on 6/13/22 when the S&P 500 closed more than 20% below its 1/3/2022 established previous high of 4796.56.
To be officially declared ended, the S&P 500 must close above its 4796.56 previously recorded high.
This is what we know about the length of this bear market:
This is what we know about its price decline:
The average decline for bear markets is 35.62%.
Yes. Keep in mind it cannot officially be declared over until the S&P 500 reaches a new all-time high (or a close above 4796.56). Currently, the market has recovered about 9% from its low and is currently around 3959.
I have learned over the years that wealth is grown only through patience and staying the course. Wealth, not income, is the key component to defining financial security. Income can change quickly based on your employment. While wealth can change too, it is much more durable than a paycheck.
If securing real financial security could be achieved without “pain”, I am sure we would all know about it. We are bombarded by claims that insist “pain” can be avoided if only a magical formula was followed. False claims by so many different sources often get in the way of achieving financial security. Spending money is easy (and fun), investing and saving is not. Successful investing requires being able to endure the “pain” of declining markets.
How many times have I heard people say, “I will wait to invest until ‘things’ get more stable or improve”? Looking back and considering how investments perform over the long term, it is difficult to understand why anyone would wait. Studies have shown that the market has many of its best days at the end of a Bear market. Waiting for a Bear market to end results in missing significant upside.
If you doubt there are rewards to investing long term, simply review the chart below of the S&P 500 over the past 30 years.
Can you give one good reason why obsessing over the current market will prove any more helpful than it did over the past 30 years? In those 30 years we have endured 9/11, the financial crisis and now pandemic related inflation. If you STILL doubt why being patient is more rewarding and helpful to achieving your financial security, consider the past since 1928.
Kevin T. Curran
Co-CEO & Chief Investment Officer
At Curran we value service over sales and believe quality service yields happy clients. Below is our 4-step process (the first three steps at no cost to you).
A short introductory call for us to get to know one other. During this call we will discuss your financial goals, concerns and hopes for the future.
In this meeting we will go over your current financial situation, take a deeper look at your goals, discuss your risk tolerances, and collect the data necessary to build a formal proposal.
Based on our data gathering session, our Private Wealth Managers will present you with a custom proposal tailored to your needs. We encourage individuals to take the time to evaluate this proposal.
If you are comfortable with the proposal and choose to invest with Curran, our team will be there every step of the way assisting in opening the recommended accounts and facilitating all necessary parts of your onboarding process.