Bear Market, Rising Interest Rates, and Recession Chatter

It has been quite the week in the economic and investment fields. The mainstream news and business programs have devoted a lot of airtime to this week's news of the S&P 500 entering a bear market¹, the Federal Reserve raising the benchmark interest rate by 0.75% and the increased chatter of a possible recession sometime in 2023 or 2024.

Bear Markets
The chart below, shows the history of both bull and bear markets since 1926. Over the last 95 years, the S&P 500 has returned an average of about 10% through the ups and downs of the market. A quick look at the chart shows much more blue colored area signifying a bull market when compared to the red color of a bear market. This shows that significantly less time is spent in bear markets when compared to bull markets, meaning markets rise for longer periods of time. Markets also gain much more during bull markets than they lose during bear markets.

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