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. https://www.investors.com/etfs-and-funds/sectors/sp500-stocks-reliably-jump-30-every-time-a-bear-market-ends/.
(2) Is the S&P 500 Bear Market a Recession Warning? Here's What History .... https://www.fool.com/investing/2023/03/16/sp-500-bear-market-recession-warning-history-says/.
(3) What Is a Bear Market and How Should You Invest in One?. https://www.fool.com/investing/how-to-invest/bear-market/.
(4) What Does the S&P 500 Bear Market Mean for You? | Nasdaq. https://www.nasdaq.com/articles/what-does-the-sp-500-bear-market-mean-for-you.
(5) Bear Market Guide: The Different Phases And How To Invest ... - Forbes. https://www.forbes.com/sites/investor-hub/article/bear-market-guide-the-different-phases-and-how-to-invest-during-one/.