The current 9.4% slide in the S&P 500 is defying historical bear market patterns, suggesting the recent volatility may be a “growth scare” rather than a prolonged collapse.
The Speed Trap: Missing the ‘Quick Drop’
Data from Carson Investment Research indicates that the current market environment lacks the velocity typically seen during the onset of a true bear market.
Ryan Detrick, Chief Market Strategist at Carson Group, noted that since 1950, the S&P 500 usually hits a 5% decline with extreme speed, averaging just 14.5 trading days.
In contrast, the “current mild pullback” that began on Jan. 27 took a staggering 35 trading days to reach the same milestone. Detrick highlighted that this duration “would by far be the most ever should this turn into a bear market,” suggesting the sluggish pace of the decline may actually be a bullish signal for long-term investors.
This post was originally published here
