Bull & Bear Markets: February 2025 Insights

Investors know that market cycles are inevitable—periods of growth (bull markets) are followed by downturns (bear markets). Understanding these trends can help investors make informed decisions about their portfolios. The Mercer Bull & Bear Charts – February 2025 offer valuable insights into historical market movements, specifically in the Australian All Ordinaries and the U.S. S&P 500 indices.

Let’s break down the key findings and what they mean for investors moving forward.

Australian All Ordinaries: Bull & Bear Market Trends

Bull Market Insights:

The average bull market in Australia lasts 69 months, delivering an average 160% gain.

The longest bull market lasted 153 months, with a 278.4% gain.

The shortest bull market was 18 months, delivering a 41% increase.

Bear Market Insights:

The average bear market lasts 14 months, with an average decline of -37%.

The worst decline was -54.1% over 21 months.

The shortest bear market lasted just 2 months, declining -27.7%.

Key Takeaway:

History suggests that bull markets in Australia tend to last much longer than bear markets. While downturns are inevitable, investors who stay invested through volatile periods tend to see long-term gains.

U.S. S&P 500: Bull & Bear Market Trends

Bull Market Insights:

The average U.S. bull market lasts 54 months, with an average 156% return.

The longest bull market spanned 153 months, generating a 559% return.

The shortest bull market lasted 29 months, gaining 66.1%.

Bear Market Insights:

The average bear market lasts 15 months, with an average decline of -30%.

The worst bear market saw a -52.6% decline over 16 months.

The shortest bear market lasted 3 months, falling -20%.

Key Takeaway:

Like Australia, the U.S. experiences longer bull markets than bear markets. The historical data reinforces the importance of staying invested through downturns to benefit from long-term market growth.

What This Means for Investors

1. Market Cycles Are Normal

Both Australian and U.S. markets experience periods of growth and decline.

Bear markets are temporary, while bull markets tend to last longer.

2. Long-Term Investing Wins

Historical data shows that markets recover and grow over time.

Panicking during downturns can lead to missed opportunities when markets rebound.

3. Diversification & Risk Management Matter

A balanced portfolio with a mix of asset classes can help cushion losses during bear markets.

Investors should align their strategy with their risk tolerance and financial goals.

Final Thoughts

Market volatility is inevitable, but historical data proves that patience pays off. Investors who stay disciplined, avoid emotional decisions, and focus on long-term growth are more likely to see success.

Source: Mercer Investments (2025, February). Bull & Bear Charts – February 2025. Mercer Investments (Australia) Limited.

Why not give Humble Goode Financial if you are interested in learning more about investment. We are always available to discuss your options and will provide balanced advice in a timely manner.

General Advice Warning:

The information on this website is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant product disclosure statement (PDS) or other offer document prior to making an investment decision in relation to a financial product.