The bear markets in Australian stock market since the 1900 is shown in the table below. The first column shows the bear market dates – bear market being defined as a decline of 20% that is not reversed within the next 12 months. The second column shows the duration in months and the third shows the percentage of decline.The fourth column shows the percentage change 12 months after the 20% decline and the last column shows if Australia or the US or both were in recession.
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Source:Corrections, gummy bears and grizzly bears in shares by Dr Shane Oliver, AMP Capital
The worst bear market was during 1973-74 when stocks fell by 59%. During the most recent Global Financial Crisis(GFC) of 2008-09, stocks crashed by 55%. This was the second worst performance in the history of Aussie stock market.
The red color rows shows severe bear markets where the market continued to decline 12 months after the 20% fall.
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