Chart of the Day - Monday, July 11th, 2022

Today’s Chart of the Day was shared by Fernando Vidal (@fernavid). The chart compares the current drawdown in the S&P 500 with previous bear markets over the past century. Fernando points out that if the bottom is already in, this would have been one of the more mild bear markets in terms of both time and depth. The two most recent bear markets listed here (2018 & 2020) were some of the shortest and shallowest on record. Many investors are hoping this one recovers in a similar V-shaped fashion to 2018 and 2020. However, it's important to be aware of recency bias. This chart serves as a reminder that bear markets tend to last longer and fall further than anything investors have experienced in the past decade.