Skip to main content Skip to Login Skip to Find An Advisor Skip to footer

Stock market performance after bear markets

Ameriprise Investment Research Group

 

As this chart of the S&P 500® Index illustrates, after the selling pressure of a bear market finally hits a bottom, stocks have a strong historical record of bouncing back in the subsequent months and years.

Longer-term investors should keep in mind that a diversified mix of stocks, bonds, alternatives and cash can earn their keep in stressful market environments, potentially performing better than the S&P 500 Index and other major indices.

 

 

The bottom line: Balance risk with opportunity and construct your portfolio within an appropriate investment time horizon to help achieve your goals.


Past performance is not a guarantee of future results.
Source: Bloomberg, as of 11/14/22.
Returns longer than 1 year are annualized.
Information provided by third parties is deemed to be reliable but may be derived using methodologies or techniques that are proprietary or specific to the third-party source.
Performance in these examples is represented by the S&P 500, assumes reinvestment of all income and does not reflect sales charges, fees or expenses. These examples are for illustrative purposes only and are not representative of any particular investment.
The Standard & Poor’s 500 Index (S&P 500® Index), an unmanaged index of common stocks, is frequently used as a general measure of market performance. The index reflects reinvestment of all distributions and changes in market prices but excludes brokerage commissions or other fees. It is not possible to invest directly in an index.
This information is not intended to provide investment advice and does not account for individual investor circumstances. Investment decisions should always be made based on an investor’s specific financial needs, objectives, goals, time horizon and risk tolerance.
Stock investments involve risk, including loss of principal. High-quality stocks may be appropriate for some investment strategies. Ensure that your investment objectives, time horizon and risk tolerance are aligned with investing in stocks, as they can lose value.
There are risks associated with fixed-income investments, including credit risk, interest rate risk, and prepayment and extension risk. In general, bond prices rise when interest rates fall and vice versa. This effect is usually more pronounced for longer term securities.
Alternative investments cover a broad range of strategies and structures designed to be low or non-correlated to traditional equity and fixed-income markets with a long-term expectation of illiquidity. Alternative investments involve substantial risks and may be more volatile than traditional investments, making them more appropriate for investors with an above-average tolerance for risk.
Diversification does not assure a profit or protect against loss.
Ameriprise Financial cannot guarantee future financial results.
Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.
Ameriprise Financial Services, LLC. Member FINRA and SIPC.
© 2022 Ameriprise Financial, Inc. All rights reserved.

Back to topTop