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Bear Markets Hit Harder And Last Longer During Recessions, Says Market Strategist: Here's A Historical Look At Bear Market Severity And Duration

Bear markets, defined as a drop of 19.9% or greater from their previous high, tend to be significantly more severe and prolonged when they occur in conjunction with a recession, according to an investment strategist.

What Happened: According to analysis shared by Liz Ann Sonders, Chief Investment Strategist at Charles Schwab, “Bear markets tend to be larger and longer when they're associated with recessions.”

In a recent post on X, Sonders shared a compelling scatter plot showcasing this relationship using S&P 500 bear market data spanning from 1946 to April 4, 2025. The chart shows bear markets that coincided with recessions and the bear markets that did not.

Bear markets occurring without a recession have historically been shallower and shorter in duration. These instances have a mean drawdown of 30%, spanning between 200 to 250 days. This magnitude and duration are shorter compared to their recession-linked counterparts.

The red circles on the chart, representing bear markets intertwined with economic recessions, are generally clustered towards the bottom-right quadrant. The mean drawdown for such instances shows more than 30% of correction, spanning ...