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Is the bear market for stocks over? What happens next?

| June 12, 2023

The S&P 500 bear market is finally over and that's great news for investors. According to an Investor's Business Daily analysis of data from S&P Global Market Intelligence, the S&P 500 always rallies in the year following the end of a bear market².

The S&P 500 is a financial index that tracks 500 large-cap U.S. companies that span all 11 market sectors. That diversity makes it a good benchmark for the broader U.S. economy.  Investors naturally get nervous about a recession when the S&P 500 drops into a bear market³.

The end of a bear market is generally considered to be when the stock market rises by at least 20% from its recent low¹. The S&P 500 bear market is “technically” over as it has risen 20% above the lows set last October 2022.

As for what it means for your portfolio, it's good news. The S&P 500 is expected to rally in the year following the end of a bear market². However, it's important to remember that past performance is not indicative of future results and investing always carries risks.


(1) It's A New Bull Market! 13 Stocks Jump 30% Or More Every Time.

(2) Is the S&P 500 Bear Market a Recession Warning? Here's What History ....

(3) What Is a Bear Market and How Should You Invest in One?.

(4) What Does the S&P 500 Bear Market Mean for You? | Nasdaq.

(5) Bear Market Guide: The Different Phases And How To Invest ... - Forbes.