Graph of the Day: Four Bad Bear Markets

From Calculated Risk:

After the excellent stock market returns in January (just kidding – actually the worst January ever), it is probably time to check in on the Four Bad Bear markets … first, from MarketWatch: U.S. stocks end worst January on record with more losses

The S&P 500 index fell 19 points, or 2.3%, to 825. For the month, the broad index fell 8.6%, its worst performance on record.

This graph is from Doug Short of dshort.com (financial planner): “Four Bad Bears”. There is much more at the site. Doug has added the market recoveries (light red and green) for the 1970s and early 2000s bear markets. Note that the Great Depression crash is based on the DOW; the three others are for the S&P 500.

Four Bad Bears