2000 to 2002 bear market drawdown 44.12%

when looking at the current drawdown period -- the decline in value of the Dow Jones Wilshire 5000 from its peak to its trough -- the most recent drop is about 41.5%. That's less than the 44.12% drawdown experienced during the 2000 to 2002 bear market, said Krein.

While only time will tell whether the bottom has been hit, a 40%-plus decline is significant, to the degree historical trends hold, said Krein.
Timing is everything
"If we happen to be at the bottom now, maybe history will hold and maybe it won't, but it still takes a multiple of the period of decline to recovery. It's that buildup that investors do not want to miss," said Krein.

Time to jump in?
Housing prices are down, and mortgage rates remain low, but potential buyers should be cognizant of being in it for the long haul, as MarketWatch's Amy Hoak reports.

The market took about three and a half years to recover after the 2002 bear market, yet the market rebounded 14.86% in the year following the trough date.
"If you expand this out to two or three years, the market has rebounded 28.28% and 48.29%, respectively," Krein said.

Historically, the recovery takes about twice as long as the decline. But for those "with the stomach and capital to wade back in," investing at market lows in the past has translated into gains of 40% and more for those who buy and then wait out the bounce back, Krein said.

"If you're a long-term investor, I think stepping in even at this point in time would be a good move. Economies don't stay weak forever, so it makes sense to position for a turnaround that we see happening sometime next year," said Pavlik.