7 Questions to Test Your Knowledge of Bear and Bull Markets
1. Which is more common: a bear market or a bull market?
- A) Bear market
- B) Bull market
- C) Neither. They occur equally often
1. Which is more common: a bear market or a bull market?
- B) Bull market
A bull market is more common. Bull markets have occurred for 78% of the past 91 years.1
2. What typically lasts longer: a bear market or a bull market?
- A) Bear market
- B) Bull market
- C) They last about the same amount of time
2. What typically lasts longer: a bear market or a bull market?
- B) Bull market
A bull market usually lasts longer than a bear market.
Average bear market: 289 days (9.6 months)
Average bull market: 991 days (2.7 years)2
3. True or False: Over the last 20 years, 56% of the S&P 500's strongest days happened during a bear market.
- A) True
- B) False
3. True or False: Over the last 20 years, 56% of the S&P 500's strongest days happened during a bear market.
- A) True
In contrast, 34% of the S&P 500's strongest days happened during the first two months of a bull market, before it was clear that a bull market had even started.2
4. Bear markets have been happening _______ since World War II (1945).
- A) Less frequently
- B) More frequently
- C) At the same rate
4. Bear markets have been happening _______ since World War II (1945).
- A) Less frequently
From 1928 to 1945, there were 12 bear markets, with one occurring about every 1.4 years (on average). Following 1945, there have been 14 bear markets. That's one every 5.4 years or so (on average).2
5. Over the long term, a bear market occurs every ________ years, on average.
- A) 1 to 2
- B) 4 to 6
- C) 7
- D) 8
5. Over the long term, a bear market occurs every ________ years, on average.
- B) 4 to 6
A bear market occurs ever 4 to 6 years.1,2
6. What's the best thing to do in a bear market?
- A) Buy
- B) Sell
- C) Nothing
- D) It depends
6. What's the best thing to do in a bear market?
- D) It depends
It depends on your circumstances, risk tolerance, and goals.
7. What's the WORST thing to do in a bear market?
- A) Buy
- B) Sell
- C) Nothing
- D) It depends
7. What's the WORST thing to do in a bear market?
- D) It depends
It depends on your circumstances, risk tolerance, and goals.
