Click Image to Embiggen
Doug Short‘s really done a fantastic job on this one…a chart comparing our current nasty bear market (summer rally notwithstanding) with both the 20 year bear market that followed the Crash of ’29 and the lost pair of decades for the Nikkei that began in 1989.
The most important thing to keep in mind is the fact that the S&P 500 actually peaked on an inflation-adjusted (read: real) basis in March of 2000. If you were to adjust the 2007 nominal high for the S&P 500, you would see that it peaked out 16% lower in real dollar terms than it did at the beginning of this decade.
By this logic, we’re already about 9 years into the current bear market, but not even halfway through, temporally-speaking, the length of what both the Japanese post-bubble or the Great Depression-era markets had to endure.
But do try to enjoy the rest of your weekend!