The S&P 500 has recently closed at new record highs as part of a sustained recovery that follows a 34% bear market in March/April 2020 due to the COVID-19 pandemic. Market analysts have questioned how long the ongoing bullish market run will continue.
Will the S&P 500 experience a bear market (peak to trough decline of 20% or more)?
This will resolve on the basis of whether the S&P 500 experiences a bear market in 2021, defined here as when prices in the market decline by 20% or more. Such a fall can occur over a short time or extended period of time.