Bulls, Bears, and Long-Term Benefits of Stock Investing

Stock returns are volatile, but nearly a century of bull and bear markets shows that the good times have outshone the bad.

• From 1926 through 2023, the S&P 500 index experienced 18 bear markets, or a fall of at least 20% from a previous peak, ranging from —21% to —80% across an average length of 10 months.

• On the upside, there were 19 bull markets, or gains of at least 20% from a previous trough. They averaged 52 months in length, and advances ranged from 21% to 936%. • When bull and bear markets are viewed together, it’s clear equities have rewarded disciplined investors.

• When bull and bear markets are viewed together, it’s clear equities have rewarded disciplined investors.

The stock market’s ups and downs are unpredictable, but history supports an expectation of positive returns over the long term.