Goldman Sachs: U.S. stocks may evolve into a cyclical bear market, typically lasting about two years, and it may take five years to rebound back to the starting point

PANews reported on April 9th, according to Cailian Press, the latest US stock report released by Goldman Sachs shows that the duration of the US bear market may be longer. It is currently in an event-driven bear market (triggered by tariffs). However, given the rising risk of economic recession, it can easily evolve into a cyclical bear market. Goldman Sachs further analyzed that from a trend perspective, the average decline of cyclical and event-driven bear markets is usually around 30%, although their durations vary.

The duration of an event-driven bear market is shorter and recovers faster. A cyclical bear market lasts for about two years on average and takes about five years to fully rebound to its starting point, while an event-driven bear market typically lasts for about eight months and can recover in approximately one year. The impact of structural bear markets is most severe with an average drop of about 60%, lasting more than three years and usually taking ten years to fully recover.