Cyclical downturns are more likely to lead to bear markets because credit conditions also begin to tighten, he said, pointing to the example of the bursting of the dot-com bubble of early internet investment in 2000. That bear market caused the S&P 500 to lose nearly half its value before its pullback ended 2 1/2 years later. It took more than seven years for the S&P 500 to top the record high it hit in 2000. The Nasdaq, which was even harder hit because of its concentration of technology stocks, didn't reach its dot-com-era high until 2015.

Source: Los Angeles Times February 09, 2018 18:27 UTC