MARKET VOLATILITY

Guide to current markets and client concerns

Insights, tools and resources from Capital Group to help you support clients during unsteady markets

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How to handle market declines

Investors often flee the market during a decline, and buy back in when stocks are skyrocketing. Both can have negative impacts.

Market insights and analysis

Timely and actionable insights to help you make sense of the markets and guide your investment decisions

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Staying focused on long-term success

Although every market decline is unique, the average S&P 500 bear market since 1950 has lasted 14 months. The average bull market has been more than five times longer.

 

Bear markets are painful, but bull markets have been powerful. The chart shows cumulative price returns for the S&P 500 Index from June 13, 1949, to June 15, 2022, highlighting each bear and bull market. The cumulative total return of the average bull market was 265%, lasting an average 67 months. The cumulative total return of the average bear market was –33%, lasting an average 13 months. Sources: Capital Group, RIMES, Standard & Poor’s. The bear market that began on January 3, 2022, is considered current and is not included in the “average bear market” calculations. Bear markets are peak-to-trough price declines of 20% or more in the S&P 500. Bull markets are all other periods. Returns shown on a logarithmic scale. Returns are in USD.

Staying focused on long-term success

Although every market decline is unique, the average S&P 500 bear market since 1950 has lasted 13 months. The average bull market has been more than five times longer.

 

Sources: Capital Group, RIMES, Standard & Poor’s. As of 6/15/22. Bear markets are peak-to-trough price declines of 20% or more in the S&P 500. Bull markets are all other periods. Returns shown on a logarithmic scale. Returns in USD.

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Standard & Poor's 500 Composite Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

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