How Long do Bear Markets Last?

1: China’s birth rate is now lower than the US

2: Consequently, China’s working age population is projected to decline significantly during this century

3: Inflation expectations are beginning to become ingrained in the American psyche (orange line – note the change in trend since 2020). This is what the Fed is fighting.

4: US employment is back to pre-pandemic peak.

5: The 11 bear markets since World War II have averaged 16 months in duration.

A review of the past 11 bear markets
Sources: Bloomberg and Wells Fargo Investment Institute. Data as of May 31, 2022. *1961 recession ended in February, whereas the S&P 500 Index peaked in December 1961. Returns measured by the S&P 500 Index. An index is unmanaged and not available for direct investment. Past performance is no guarantee of future results. This table was excerpted from Economic and Market Strategy Update (June 2022).

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