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Investment Evidence Based Investing Dimensional

Bulls, Bears, and Long-Term Benefits of Stock Investing

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Awaken Investments of Aligned Capital Partners

Source: Dimensional Fund Advisors

Stock returns are volatile, but nearly a century of bull and bear markets shows that the good times have outshined the bad times.

  •  From 1926 through 2021, the S&P 500 Index experienced 17 bear markets, or a fall of at least 20% from a previous peak. The declines ranged from —21% to —80% across an average length of around 10 months.
  •  On the upside, there were 18 bull markets, or gains of at least 20% from a previous trough. They averaged 55 months in length, and advances ranged from 21% to 936%.
  • When the bull and bear markets are viewed together, it’s clear equities have rewarded disciplined investors.


Past performance is no guarantee of future results. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio. In USD. Chart end date is December 31, 2021; the last trough to peak return of 119% represents the return through December 2021. Due to availability of data, monthly returns are used January 1926 through December 1989; daily returns are used January 1990 through present. Periods in which cumulative return from peak is –20% or lower and a recovery of 20% from trough has not yet occurred are considered Bear markets. Bull markets are subsequent rises following the bear market trough through the next recovery of at least 20%. The chart shows bear markets and bull markets, the number of months they lasted and the associated cumulative performance for each market period. Results for different time periods could differ from the results shown. A logarithmic scale is a nonlinear scale in which the numbers shown are a set distance along the axis and the increments are a power, or logarithm, of a base number. This allows data over a wide range of values to be displayed in a condensed way. Source: S&P data © 2022 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. April 21, 2022 Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise noted, any indicated total rates of return reflect the historical annual compounded total returns including changes in share or unit value and reinvestment of all dividends or other distributions and do not take into account sales, redemption, distribution, or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. These materials have been prepared by Dimensional Fund Advisors Canada ULC.

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