Today’s Chart of the Day from CFRA Research goes all the way back to 1945 and shows the average number of months it takes to “recover” from market declines.The chart shows that most downturns don’t last as long as many may think, and most are around a year or less.It also helps define the terms Wall Street and TV hosts use when discussing these declines. A “Pullback” is a decline more than 5%, a “Correction” is more than 10%, and a” Bear Market” is more than 20%.
Bonus: Why is the term “Bull” for when market goes up and “Bear” for when market goes down? Bulls typically put their heads down and attack up versus bears who often stand up and drop down when attacking. Now you know.