Examining Bear Market Bounces
The big equity bounce has continued, with the S&P 500 Index up more than 17% from the multi-year lows hit last Monday. The big question on many investors’ minds is could this be a bear market rally? After all, some of the most spectacular short-term bounces took place during bear markets.
According to our friends at Strategas Research Partners, during the 3-year bear market after the tech bubble burst in the early 2000s, the S&P 500 bounced more than 10% different 6 times on the way to falling 49.1%. During the financial crisis when the S&P 500 lost more than 56%, stocks bounced more than 10% three times, with a... Read more