Make us your home page
Instagram

A bear market for the record books

Bear markets come and go, but this is already one for the record books. It has fallen faster and deeper than most, vaporizing more than $10 trillion in wealth and the equivalent in investor confidence. It's being compared to the Great Crash of the early 1930s, though it has yet to plumb those harrowing depths. Was last week's rally a sign that it hit bottom? What will recovery look like?

1929-32 The most famous bear market, which helped usher in the Great Depression. After a near decadelong run-up, the Dow hits a high of 386 in 1929, only to fall to a low of 40.5 in 1932, an 89 percent plunge. The three-year run includes more than a third of the most volatile trading days in the modern Dow's history. It takes until 1954 — 22 years — for the Dow to reach its previous high.

1973-74 The first major bear market since WWII. The Watergate scandal, an Israeli-Arab war and an oil embargo conspire to send the country into a recession. Inflation tops 10 percent. It takes until 1982 for the Dow to recoup its losses.

2007-09

The Dow peaks at 14,164 on Oct. 9, 2007. The bear picks up speed on the news that venerable Lehman Bros. is filing for Chapter 11 bankruptcy. Further erosion of the banking sector and more grim economic news drive the Dow into the 6,000s. The current bear market includes the Dow's largest one-day point loss (778), largest intraday range (1,019) and the largest one-day point gain (936).

1981-82

2000-02 The dot-com bubble bursts after the Dow peaks at 11,750 in January 2000. Accounting scandals at companies like WorldCom and Enron prolong the downturn, which is accompanied by a brief recession. The Dow bottoms out at 7,286 in October 2002 and takes four years to climb back to its previous high.

1946-49

1956-57

1968-70

average

1966

1939-42

Here is a comparison of bear markets since 1929. A line's movement to the right reflects the Dow Jones Industrial Average's time in decline. Its movement downward shows the decline in value before the market turned around.

0% price Decline

-50%

-80%

1952-53

1959-60

1 year

-20%

1961-62

. years spent declining, bear market peak at bottom

2 years

3 years



1937-38 Compared with the early 1930s, this is a tame bear. Still, a recession cuts the value of the Dow nearly in half in just over a year. It isn't helped by European countries raising taxes to fund war efforts. The recovery is quickly followed by another, though less severe, bear market that begins in 1939.

A bear market for the record books 03/14/09 [Last modified: Sunday, March 15, 2009 4:29pm]
Photo reprints | Article reprints

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Lost Highway: As FHP struggles to recruit, speeding tickets plummet

    State Roundup

    TALLAHASSEE — The number of speeding tickets written by Florida state troopers has plunged three straight years as the agency grapples with a personnel shortage and high turnover.

    A Florida Highway Patrol Academy class in the late 1980s. Typically, graduating classes had about 80 recruits. But the most recent class has less than half that as the agency continues to struggle to fill vacancies. [

Florida: Highway Patrol]
  2. Kidpreneurs — and adults — capitalize on gooey, squishy Slime craze

    Retail

    First it was Play-Doh. Then Gak. There have been dozens of variations for sale of the oozy, gooey, squishable, stretchable kids' toy through the generations.

    Aletheia Venator and Berlyn Perdomo demonstrate the stretchiness of their slime. - Berlyn Perdomo and her friend, Aletheia Venator, both 13, make and sell slime which can be seen on their instagram site @the.real.slimeshadyy [JIM DAMASKE   |   Times]
  3. The last farmer of Florida's prized Zellwood corn is thinking of packing it in

    Consumer

    MOUNT DORA — Hank Scott steps out of his pickup between the long rows and snaps off an ear that grows about bellybutton-high on the forehead-high stalks.

    Hank Scott, co-owner of Long and Scott Farms, shucks an ear of corn on the farm in Mount Dora, Fla., on Wednesday, May 10, 2017. The farm specializes in Scott's Zellwood Triple-Sweet Gourmet Corn. LOREN ELLIOTT   |   Times
  4. Law firm's Russia ties prove nothing about Trump

    Business

    The statement

    "Law firm @POTUS used to show he has no ties to Russia was named Russia Law Firm of the Year for their extensive ties to Russia. Unreal."

    Sen. Chris Murphy, D-Conn., stands during a media availability on Capitol Hill, Monday, June 20, 2016 in Washington. A divided Senate blocked rival election-year plans to curb guns on Monday, eight days after the horror of Orlando's mass shooting intensified pressure on lawmakers to act but knotted them in gridlock anyway — even over restricting firearms for terrorists. (AP Photo/Alex Brandon)
  5. Pasco county lawyer disbarred for taking woman's money

    Real Estate

    NEW PORT RICHEY — The Florida Supreme Court on Thursday disbarred Pasco County attorney and former congressional candidate Constantine Kalogianis.

    The Florida Supreme Court on Thursday disbarred Pasco County attorney and former congressional candidate Constantine Kalogianis. 
[2016 booking photo via Pasco County Sheriff's Office]