The bearish stock market in stocks is a reminder that long-term markets tend to rebound quite nicely.
According to research by Keith Lerner , Truist co-chief investor officer,
the S&P 500 is now higher in eight of nine cases where the index fell 20% or more since its all-time high in 1957.
In those eight cases, the average return on stocks was 29%
Surprisingly, stocks also have reclaimed ground sharply after losing 20% or more from their highs.
Lerner's data indicates that the S&P 500 has increased 15% in the seven times stocks fell 20% or more since 1957.
"Given the wide variety of outcomes", Lerner said,
"Our view is not that this is the time to become aggressive.
According to Lerner, investors moved quickly this year in order to re-price stocks amid high inflation and Federal Reserve interest rate hikes.