See how bad markets have typically been followed by better performing markets. Often these bull markets start with a bang, and last for an average of five years.
S&P 500 Index from January 1939 through December 1954
S&P 500 Index from January 1972 through December 1987
Hypothetical example for illustrative purposes only. Source: Morningstar Inc. IA - SBBI S&P 500 Total Return Index
Assumptions: One-time investment of $100 on day of market peak prior to bear market (decline of over 20% of index value) in the S&P 500 Index. Standard and Poor's index tracks 500 stocks of large-company U.S. companies and is the basis for several index mutual funds and exchange-traded funds. Indexes are unmanaged and cannot be invested in directly.
You should always keep in mind, though, that you can't count on the market to behave the same way in the future as it has in the past. These comparisons, while a helpful way to evaluate your investment options, should not be considered predictors of future performance.
There is no guarantee that any investment strategy will achieve its objectives. Past performance is no guarantee of future results.
Standard and Poor's index tracks 500 stocks of large-company U.S. companies and is the basis for several index mutual funds and exchange-traded funds.