Thursday is The inflation report sent markets into turmoil as traders returned to buying in the hope that the way is now clear for the Fed to reverse its rate hikes. Everyone is now wondering if the market has bottomed out after the extended slide that began earlier this year.

What happened: Looking at history, there’s a chance the stock market could return to its highs within three months, a chart by shares Carson group Chief Market Strategist Ryan Detrick showed.

The current bear market, observed from January 22nd to October 22nd, has seen a 25% decline, and the previous bear market that came closest to this in terms of the magnitude of the pullback was in the 1980s. That S&P500 The index was then down about 27% over a period of nearly two years. As it became clear that inflation had peaked, the market hit new highs within three months, Detrick noted.

The early 1980’s had a 27% bear market that lasted 21 months.

When it became clear that inflation had peaked, it hit new highs within three months. pic.twitter.com/03ixJoJOFh

— Ryan Detrick, CMT (@RyanDetrick) November 10, 2022

See also: It’s the best day for major indices in more than 2 years

Huge advantage in sight? The Carson Group analyst said October 12 could have marked the end of the current market. Previous post-bearish performance shows an average gain of 41% for the S&P 500 index a year later and a 59% return two years later. Even with Thursday’s rally, the index is only 10% off its lows, suggesting scope for strong upside potential from current levels.

Was October 12, 2022 the end of this bear market? We think so, but of course no one knows for sure.

If so, a look at other bears showed that stocks are up 41% a year later and 58% two years later.

Currently 10% discount on the lows… pic.twitter.com/ikjWI1EDLA

— Ryan Detrick, CMT (@RyanDetrick) November 10, 2022

However, the optimistic picture the analyst paints depends on how inflation behaves in the coming months and how the Fed reacts…