How Long do Stock Markets Take to Recover
Now before we learn how long it takes for the markets to recover, we need to learn about Bear Markets.
What is a Bear Market?
A bear market is when a market experiences a price declines. It typically describes a condition in which stock prices fall 20% or more from recent highs. Bear markets are often associated with declines in an overall market or index like the S&P 500 or The Dow Jones. Bear market ARE NORMAL and THEY ARE HEALTHY. The stock market has always came out of a bear market stronger and healthier than before.
Can you Make Money in a Bear Market?
The short answer is "yes" you can make money in a bear market from short selling. Short selling or shorting is a selling borrowed shares and buying them back at lower prices. It is an extremely risky trade and can cause heavy losses if it does not work out. I don't recommend it but some people love it.
Now, How Long do Stock Markets Take to Recover?
Over the course of the total stock market we have seen bear markets last 25 years like in 1930s (Great Depression) from lasting 6 months like in the 1980s. The average bear market last around 11 months and I think that the 2020 bear market will last around that long. I think this because the USA has peaked with COVID-19 cases, people aren't working, unemployment is over 20 million people and growing,
I hope you guys learned something. Stay Safe, Stay Happy and Stay Home!