A Bull Market Is Coming: 3 Beaten-Down Stocks to Buy Before the Recovery
The S&P 500 has been in a bear market since June 13. So it is important to know a few things about bear markets. There have been 22 of them since 1928 (as measured by the S&P 500 index). Those bear markets have ranged from a 20.6% decline (barely meeting the 20% bear market threshold) to 83% in the depths of the Great Depression in 1930. Smart investors know that every bear market has ended with the same result -- a recovery rally.
Some bear markets have yielded to spectacular bull market runs. For instance, the bear market in 1949 reached its lowest level on June 13. The ensuing bull market ran for 9,146 days (more than seven years) and gained 267% by the time it peaked. When the Great Recession troughed on March 9, 2009, a bull market then produced a 400% gain and lasted 1,997 days (nearly five-and-a-half years) until it peaked.
Perhaps most astonishingly, the bear market induced by Black Monday reached its nadir on Dec. 4, 1987. After that, it took only 701 days (less than two years) for the market to rally 582% to a new top.
Source Fool.com
