Chart of the Day - Wednesday, March 11th, 2020

Today’s Chart of the Day was shared in a blog post titled  Bear Market Rallies by Michael Batnick of Ritholtz Wealth Management. The chart shows the S&P 500 (in red) during the 2000-2002 bear market. On top, in black, are the bounces from the lows along the way down. The S&P 500 fell over 40% during this period! This chart serves as a great reminder that some of the sharpest rallies occur within bear markets and downtrends. Notice that the index rallied about 20% on three separate occasions during these two-years. Michael explains that bear markets often present great opportunities for traders. However, for long-term investors, he emphasizes that bear market rallies can be deceptive and mess your emotions.  Check out the full blog post here .