Ben Carlson: Average bear market since 1945 has 32.9 percent decline and lasts 12 months

Ben Carlson: Average bear market since 1945 has 32.9 percent decline and lasts 12 months
Average bear market drops 32.9 percent

The average bear market in equities since 1945 has experienced a 32.9 percent drawdown, with declines from peak to trough averaging 12 months.

Ben Carlson, Director of Institutional Asset Management at Ritholtz Wealth Management, added that it usually takes 21 months for the market to recover and reach new highs after hitting the bottom, and there have been 13 bear markets in that period, which equates to about one every six years.

Carlson has previously called attention to large moves in individual stocks, noting that Planet Fitness shares are down 50% this year. He has also advised investors that it may be a timely moment to rebalance their portfolios. These comments come as investors assess historical bear market data and recovery timelines.

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