The duration of a bear market can vary significantly depending on the economic, political, and financial circumstances that cause it. However, based on historical data:
Historical average: Approximately 9-18 months.
Extreme cases: Some bear markets have lasted only a few months (like the one in 2020, which lasted 33 days), while others have stretched over several years (like the one from 2000-2002 or the one from 2007-2009, which lasted around 2 years).
Factors influencing duration:
1. Causes of the bear market: If it is due to a recession, it may last longer; if it is just a market correction, it is usually shorter.
2. Monetary and fiscal policy: Actions by central banks and governments can accelerate or prolong recovery.
3. Investor sentiment: Panic can prolong the decline, while confidence can accelerate recovery.
In general, bull markets tend to last longer than bear markets, and recovery after a decline is usually strong.
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