Plotlines: The 10 most recent bear markets
The S&P 500 index plunged into a bear market on July 9 2008 — more than 20 percent below its record high close of 1,565.15 points on Oct. 9, 2007 — after ceding to the pressure of a housing slump, a credit crisis, record-high oil prices and a weakening economy.
The S&P 500 was officially introduced in 1957 but its value has been extrapolated. Since 1929, whenever the index has fallen into a bear market, it has on average shed 29.4 percent of its value for the duration of the slump, which has averaged just over a year.
The S&P 500’s worst bear market occurred in the early years of the Great Depression and stretched from April 10, 1930, to June 1, 1932.
The following is a recap of the previous 10 bear markets for the S&P 500, using “The Stock Traders Almanac 2008″ data: