The market volatility continues, as the S&P 500 Index has closed either up or down 4% or more for a record 7 consecutive days. With the S&P 500 Index down 30% from the highs, it has officially moved into a bear market. Yesterday, we took a look at how stocks did after the lows of major corrections formed, and today we’ll take another angle on this.

We do not know if down 30% is the lows; in fact, it probably isn’t. The good news is we feel we are getting close to a major low. How quickly could stocks regain their February 19 highs? “Historically we’ve found that some of the quickest market sell-off

The indiscriminate selling continued yesterday, with one of the worst days in stock market history. Fears over the potential impact of COVID-19 (coronavirus) have led to one of the steepest sell-offs in history, rivaling what we saw in 1962 and 1987.

With the S&P 500 Index down 30% from the all-time highs set less than a month ago on February 19, it is quite clear the stock market is voting on a significant economic slowdown over the coming months. Historically, during bear markets we have found that stocks pulled back 37% on average during a recession and 24% on average if a recession is avoided. With stocks currently down r

The S&P 500 Index entered a bear market on Thursday, closing ‐27% below its February 20 high. While the drop has created what we think is an attractive opportunity for long‐term investors, it makes sense to be careful here given the ongoing uncertainty surrounding the impact of the COVID‐19 pandemic and increased odds of a US recession. In response to the pandemic, we have lowered our forecasts for economic growth, stocks, earnings, and Treasury yields. 

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The global COVID-19 pandemic has caused significant economic disruption globally and driven stocks into a bear market for the first time in over a

Having a playbook to follow can be very helpful during bear markets. It helped us here in the LPL Research department in 2008–09, and we think it can be helpful for the current situation. We all want to know the answers to the toughest questions, such as, how much further might stocks fall?  Are we in a recession in the United States?  Also, how long will the crisis last?  These are extremely difficult questions to answer.

Step #1: Follow Your Plan

Our playbook for this bear market, which has some similarities to the version we used in 2008–09, starts with suitable investors having and following yo