The Dow 'exits' bear-market territory. Here's why investors should take it with a grain of salt

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Dow 'exits' bear-market territory. Here’s why investors should remain cautious

After outperforming both the S&P 500 and Nasdaq Composite in November, the Dow Jones Industrial Average has exited bear-market territory, based on oft-cited criteria, on the final trading day of the month.

Typically, when a given index or asset has risen 20% or more off a recent bear-market low, it is said to have technically exited bear-market territory. Looking further back, market history over the last couple of decades is replete with similar examples, as MarketWatch has reported. This ultimately underscores a simple point: it’s difficult to say when a bear market has truly ended, since the start of a new bull market is often only crystal-clear in retrospect — not unlike the challenge of determining the start of a recession.

 

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It’s still down 20% for the year, geniuses.

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