The current bull market has been a boon for investors, with stock prices soaring and the S&P 500 climbing by over 46% from its lowest point in late 2022. However, as we are now well into this bull market, some investors may be wondering how much longer it can last. While there is no surefire way to predict the future of the market, looking at historical data can provide some insight.
On average, bull markets last far longer than bear markets. According to data from investment group Bespoke, the average S&P 500 bull market since 1929 has lasted around three years. There have been outliers, such as the bull markets from 1987 to 2000 and 2009 to 2020, which lasted much longer. However, the median length of a bull market is around a year and a half.
Looking at the last 10 S&P 500 bull markets dating back to 1970, half of them have lasted at least 1,000 days. Bull markets seem to be lasting longer as time goes on, thanks in part to better economic policies and regulations. On the other hand, bear markets are generally much shorter, with an average duration of 286 days.
While it’s impossible to predict when the next downturn will occur, investors can take steps to prepare for a potential bear market. Investing in stocks of healthy companies and holding them for the long term can help weather any market downturns. It’s also a good time to review your portfolio and consider selling any underperforming stocks.
In conclusion, while we can’t say for certain how long the current bull market will last, history shows us that good economic times tend to last longer than downturns. By investing wisely and maintaining a long-term perspective, investors can protect their portfolios and navigate any market fluctuations that may come their way.
