Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup

The Dow’s Fastest Bear Market Recovery in 30 Years

November 17, 2020 By Jeremy Jones, CFA

By Sittipong Phokawattana @ Shutterstock.com

Marketwatch reports here that the Dow just completed its fastest bear market recovery in 30 years. It takes an average of 1,483 trading days for the Dow to hit a new all-time high after suffering a bear market. This time it took only 193 trading days.

Trillions of dollars worth of fiscal stimulus and a monetary stimulus program that crossed multiple redlines helped quicken the recovery.

Pro-growth regulatory policy was also a likely contributor. The truth is, investors who took on too much risk lucked out in this bear market. Prolonged bear markets are the most destructive variety. Next time, those investors may not be so lucky.

Mark DeCambre reports for MarketWatch:

The Dow Jones Industrial Average on Monday notched its first all-time high since February, ending a relative fallow period for the blue-chip benchmark, which was hit hard by the COVID-19 pandemic relative to its peers.

But the climb still represents the fastest rebound from a bear-market low for the benchmark in about three decades, according to Dow Jones Market Data.

On Monday, the Dow DJIA, -1.04% finished firmly above its Feb. 12 closing high at 29, 551.41. At 193 trading days, it is the fastest bounceback from a fall of at least 20% from a recent peak — a widely accepted definition of a bear market — since April 17, 1991. That’s when the Dow took 191 trading days to recover from a bear-market drop.

This recent run is a comparatively breakneck rebound for the blue-chip index, with the average recovery from a bear market to a fresh all-time high for the Dow, on average, spanning 1,483 trading days.

The prospective record for the Dow, however, comes weeks after its rival benchmarks have rebounded mightily and far more rapidly from their coronavirus-induced lows.

The S&P 500 SPX, -0.75% traversed 126 trading days from its bear-market low before achieving a record high on Aug. 18, marking the fastest such rebound on record. Meanwhile, it took the Nasdaq Composite Index COMP, -0.36% a mere 76 trading days on June 8 to carve out a fresh all-time closing high since putting in its bear market on March. That marked the tech-heavy index’s quickest rebound from a bear market since March 2009.

So far, the Dow has climbed 60.5% since its March 23 bear-market nadir, the S&P 500 index has gained nearly 62%, while the Nasdaq Composite has soared over 73% over the same period.

The rebound for the Dow, however, also comes as the benchmark is approaching a psychological milestone at 30,000, which may also confirm to bulls that the overall stock market is on a decided upswing.

Read more here.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • The Global Bear Market
  • Are the Pieces Finally in Place for a Bear Market?
  • Does this Explain the Bear Market in Stocks?
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Richard C. Young & Co., Ltd. was ranked #5 in CNBC's 2021 Financial Advisor Top 100. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • PARTY’S OVER: Covid Booze Binge Coming to an End? - July 7, 2022
  • Avoid This Serious Tax Mistake in Retirement - July 6, 2022
  • Could Car Dealers Get Flooded with Cars Mid-Recession? - July 5, 2022

Search Young Research

Most Popular

  • Even Without Food and Gas, Inflation is Soaring
  • Avoid This Serious Tax Mistake in Retirement
  • Could Car Dealers Get Flooded with Cars Mid-Recession?
  • Red States Churning Out Jobs While Blue States Lag Behind
  • Time to Save, Troubles Dining Out, and Intelligence on Yellowstone
  • Here’s Why You Need a 15-Year Retirement Investment Plan
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • Despite Inflation, Best Year Ever for Vacation Demand
  • The Power of a Compound Interest Table
  • “Talk to Me, Goose!” Time Flies in Top Gun: Maverick

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • Dollar Strengthens as “Least Bad” Currency Today
  • Biden’s Economic Illiteracy and Shameless Demagoguery
  • “Shooter! Run!”
  • FOOD SHORTAGE: Drought in Italy Leaves Farmers High and Dry
  • BANKRUPTCY: Airline Restructures as Exhausted Pilots Demand Relief
  • BIDEN OUT OF TOUCH: Will America See Recession, or Worse?
  • Your Average Joe – a Man Out of Touch
  • “Talk to Me, Goose!” Time Flies in Top Gun: Maverick
  • The Dangers of Politicizing the Federal Reserve
  • FOOD SHORTAGE: Four Reasons Farms Are Suffering

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2022 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.