Investment insights from Capital Group
Every bull market has been longer than the bear market that preceded it
Sources: Capital Group, RIMES, Standard & Poor’s. Includes daily returns in the S&P 500 Index from 13/6/49–30/6/23. The bull market that began on 12/10/22 is considered current and is not included in the “average bull market” calculations. Bear markets are peak-to-trough price declines of 20% or more in the S&P 500. Bull markets are all other periods. Returns are in USD and are shown on a logarithmic scale. Past results are not predictive of results in future periods.
The worst US bear markets were all followed by strong recoveries
Sources: Capital Group, RIMES, Standard & Poor’s. As of 30/6/23. Market declines are based on the five largest price return declines in the S&P 500’s value (excluding dividends and/or distributions) with 100% recovery after each decline. The return for each of the five years after a low is a 12-month return based on the date of the low and is shown in total returns (includes reinvested dividends and/or distributions). Investors cannot invest directly in an index. Past results are not predictive of results in future periods.
Many businesses got their start amid volatile markets
Source: Capital Group. As of 30/6/23. Bear markets are peak-to-trough price declines of 20% or more in the S&P 500. Bull markets are all other periods.
Missing just a few of the market’s best days can hurt investment returns
Sources: RIMES, Standard & Poor’s. As of 30/6/23. Values in USD and excludes the impact of dividends. Past results are not predictive of results in future periods.
Two views of the same investment tell a very different story
Sources: Standard & Poor’s. Short-term view represents the S&P 500 Index and reflects monthly total returns from 30/6/13 through 30/6/23. Long-term view represented by a hypothetical US$10,000 initial investment in the same index from 30/6/13 through 30/6/23.
Market Volatility
European Equity
U.S. Equities
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Past results are not predictive of results in future periods. It is not possible to invest directly in an index, which is unmanaged. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.
Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.