{"id":1409,"date":"2009-04-08T11:46:56","date_gmt":"2009-04-08T16:46:56","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=1409"},"modified":"2009-04-08T11:46:56","modified_gmt":"2009-04-08T16:46:56","slug":"a-history-of-bear-markets","status":"publish","type":"post","link":"http:\/\/blog.leavittbrothers.com\/?p=1409","title":{"rendered":"A History of Bear Markets"},"content":{"rendered":"<p>Here are all the bear markets since 1950. A bear market is defined as a 20% drop off the highs. The current bear has been the steepest. &#8230;<!--more--><br \/>\n<img src=\"http:\/\/leavittbrothers.com\/stocks-options-futures-trading-reports\/2009\/images\/bears-since-1950.gif\" alt=\"\" \/><br \/>\nNow let&#8217;s look at each bear market separately.<br \/>\n<strong>1956-1957:<\/strong> The market declined  21.5% over 14.7 months\u2026bottomed for 8 weeks\u2026then gained 30% off the lows over the next 12 months. The entire bull move off the bottom lasted just over 4 years.<br \/>\n<img src=\"http:\/\/leavittbrothers.com\/stocks-options-futures-trading-reports\/2009\/images\/1956bearmarket.gif\" alt=\"\" \/><br \/>\n<strong>1961-1962:<\/strong> The market declined 28% over 6.4 months\u2026bottomed for 5 months\u2026then gained 33% off the lows over the next 12 months. The entire bull move off the bottom lasted just almost 4 years.<br \/>\n<img src=\"http:\/\/leavittbrothers.com\/stocks-options-futures-trading-reports\/2009\/images\/1961bearmarket.gif\" alt=\"\" \/><br \/>\n<strong>1966:<\/strong> The market declined 22.2% over 7.9 months\u2026bottomed for 6 weeks\u2026then gained 33% off the lows over the next 12 months. The entire bull move off the bottom lasted just over 2 years.<br \/>\n<img src=\"http:\/\/leavittbrothers.com\/stocks-options-futures-trading-reports\/2009\/images\/1966bearmarket.gif\" alt=\"\" \/><br \/>\n<strong>1968-1970:<\/strong> The market declined 36.1% over 17.8 months\u2026bottomed for 6 weeks\u2026then gained 43.7% off the lows over the next 12 months. The entire bull move off the bottom lasted just over 2 years, 8 months.<br \/>\n<img src=\"http:\/\/leavittbrothers.com\/stocks-options-futures-trading-reports\/2009\/images\/1968bearmarket.gif\" alt=\"\" \/><br \/>\n<strong>1973-1974:<\/strong> The market declined 48.2% over 20.7 months\u2026bottomed for 2 months\u2026then gained 38% off the lows over the next 12 months. The entire bull move off the bottom lasted just over 6 years, 2 months.<br \/>\n<img src=\"http:\/\/leavittbrothers.com\/stocks-options-futures-trading-reports\/2009\/images\/1973bearmarket.gif\" alt=\"\" \/><br \/>\n<strong>1980-1982:<\/strong> The market declined over 27.1% over 20.4 months\u2026bottomed for 5 months\u2026then gained 58% off the lows over the next 12 months. The entire bull move off the bottom lasted just 5 years.<br \/>\n<img src=\"http:\/\/leavittbrothers.com\/stocks-options-futures-trading-reports\/2009\/images\/1980bearmarket.gif\" alt=\"\" \/><br \/>\n<strong>1987:<\/strong> The market declined 33.5% over 3.3 months\u2026bottomed for 7 weeks\u2026then gained 21.4% off the lows over the next 12 months. The entire bull move off the bottom lasted just over 12 years (the 1990 sell-off didn\u2019t reach 20% so technically it wasn\u2019t a bear market).<br \/>\n<img src=\"http:\/\/leavittbrothers.com\/stocks-options-futures-trading-reports\/2009\/images\/1987bearmarket.gif\" alt=\"\" \/><br \/>\n<strong>1990:<\/strong> The market declined 19.9% over 2.9 months\u2026then gained 29.1% off the lows over the next 12 months.<br \/>\n<img src=\"http:\/\/leavittbrothers.com\/stocks-options-futures-trading-reports\/2009\/images\/1990bearmarket.gif\" alt=\"\" \/><br \/>\n<strong>2000-2002:<\/strong> The market declined 49.2% over 30.5 months\u2026bottomed for 7.6 months\u2026then gained 33.7% off the lows over the next 12 months. The entire bull move off the bottom lasted just over 5 years.<br \/>\n<img src=\"http:\/\/leavittbrothers.com\/stocks-options-futures-trading-reports\/2009\/images\/2000bearmarket.gif\" alt=\"\" \/><br \/>\n<strong>2007:<\/strong> So far, the market declined 56.8% over 17 months\u2026<br \/>\n<img src=\"http:\/\/leavittbrothers.com\/stocks-options-futures-trading-reports\/2009\/images\/2007bearmarket.gif\" alt=\"\" \/><br \/>\n<strong>Quick Observation:<\/strong> Every bear market did at least a &#8220;double bottom&#8221; while some did triple bottoms. So if the low of the current bear market is in and history serves as a good precedent, expect a test of the low in the next couple months. And if the low is taken out by a significant amount, start over and look for a test a few months later.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here are all the bear markets since 1950. A bear market is defined as a 20% drop off the highs. The current bear has been the steepest. &#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"_links":{"self":[{"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/1409"}],"collection":[{"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1409"}],"version-history":[{"count":0,"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/1409\/revisions"}],"wp:attachment":[{"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1409"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}