• Matt Oberholzer

Bear Market Week! What Goes Down has Historically Gone Back Up

Wanting to get out when the market drops is an emotional decision, one that is difficult to go against – especially when it is not just the stock market that is dropping, but also the bond market.

Yet, as you calmly ponder the bear market and its 20%+ stock market correction, remember that


markets do go down, and they also go up.


These days, the stock market may feel like bungee jumping without a rope, but it is much more like a roller coaster with its ups and downs.


While past performance is not a guarantee of future results, we can see the resiliency of the US markets over time.


The S&P 500’s Performance since 2000

· From March 24, 2000, to Sept. 21, 2001, the S&P 500 dropped 36.77%.

· From Jan. 4, 2002, to Oct. 9, 2002, it dropped 33.75%.

· From Oct. 9, 2007, to Nov. 20, 2008, it dropped 51.93%.

· From Jan. 6, 2009, to March 9, 2009, it dropped 27.62%.

· From Feb. 19, 2020, to March 23, 2020, it dropped 33.92%


Despite all those losses, when you look at the S&P’s overall performance during that time frame – from March 24, 2000, to Dec. 31, 2021 – it was up 312%.


Will this time be different? Do we have reason to believe that it will? Well, history never repeats itself exactly, but in my opinion, it will rhyme.

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