Since the market bottomed out on March 23, the S&P 500 and Dow Jones have surged 23 percent and 24 percent, respectively. But we may not be out of the woods yet. When the stock-market slips into a bear market, it tends to return to return to that low more often than not, according to data from Bespoke Investment Group.
Bespoke looked at the last 25 bear markets, dating back to 1928. In those instances, the S&P has dropped to a lower point than the initial low 60 percent of the time.
But the effect may be washing out. Of the 11 bear markets from 1928 through 1940, nine of them saw the S&P 500 make a lower low. Since 1940, more often than not, the bear markets have not set a new low after the initial drop.
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