History Says All Bear Markets Have 1 Trait in Common -- and It's Fantastic News for Investors

Investors are watching a rise in bear-market signals, including the “Buffett Indicator” suggesting markets are historically overvalued. The American Association of Individual Investors reported 44.4% of individual investors expect a bear market within six months, up from 32.9% predicting a bull market, a 4.5 percentage-point increase in a week. The article argues there’s a recurring feature in U.S. bear markets: they tend to be shorter than bull markets. Using S&P 500 history, it cites the dot-com bear (31 months) followed by a 60-month bull, and the Great Recession bear (17 months) followed by nearly a decade-long bull until the February 2020 downturn. It also notes bull markets historically recoup losses, often by multiples.