Bull and bear markets — historical trends and portfolio impact

With market volatility a main concern among investors, it is important to review historical trends to put market volatility concerns into perspective.
As shown in the chart below, bull/rising markets (shown in green) have been longer and more sustained than bear/declining markets (shown in red).
The effect that market volatility has on your portfolio may be minimized with a long-term outlook and investment plan.

Bull and bear facts1 Bull market Bear market

Average gain in bull market:
Average length of bull market:
Average loss in bear market:
Average length of bear market:
A prolonged market period in A prolonged market period in
+158.52%
which an investment has prices which an investment has prices
1,742 days that rise faster than the historical that fall. Typically character-
-33.18% average. Typically characterized ized by a stock market that
by a stock market rise of at least has fallen at least 20% from
363 days
20% from its previous low.2 its previous high.2

The historical performance of the S&P 500 Index during US bull and bear markets
The bold numbers calculate the duration of months for the market, either being bull or bear, and the percentages cover the total return for the time period.1
10/57 12/60 12/65 12/70 12/75 12/80 12/85 12/90 12/95 12/00 12/05 12/10 12/15 12/19
Returns (%)
600

500
49.7 25.7 73.8 147.7 3.4 1.5
86.35% 48.05% 125.63% 582.15% 21.40% 24.22%
400 43.4 31.5 60.4 62.5 129.7
79.78% 73.53% 228.81% 96.21% 377.55%
300

200

100

-100 6.5 17.9 20.5 6.6 2.1

-27.97% -36.06% -27.11% -31.97% -27.62%
7.9 20.7 3.3 17.9 13.4
-22.18% -48.20% -33.51% -36.77% -51.93%

In the chart above, the green time periods indicate bull markets when the S&P 500 rose 20% or more from its previous low. The red time periods indicate bear markets when the S&P 500 declined 20% or more from
its previous high.
On average, when the market is evaluated from 1957–2019, there were bear markets or losses for 362 days, while the bull markets or gains were for 1,651 days. Data shown is as of the last bull market, which
ended on 1/25/2018.

1 Source: Bloomberg L.P. Returns from 10/22/1957–12/31/19. The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap US stock market performance. Investors cannot invest directly in an index. Index returns do not reflect
any fees, expenses, or sales charges. This chart is for illustrative purposes only and not indicative of any actual investment. These returns were the result of certain market factors and events which may not be repeated in the future. Past performance is
no guarantee of future results.
2 Source: Invesco

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Stock and other equity securities values fluctuate in response to activities specific to the company as well
as general market, economic and political conditions.

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