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| *Ostroff, Fair and Company>>>Investing |
How long would a "Bear Market" last? |
Is there really a "Bear Market"? Or is it just a Large sector correction? I would like more info. Hi, i recommand you a good and basic tutorial for investing. it covers all Issues related to your Investing and everything around it. http://www.investingtutorial.info/... wish it will help you. Good Luck , Best Wishes! In bear markets, shares fall further, faster and for longer than anyone ever thinks possible, although an average bear market lasts a much shorter time than an average bull market, say 1-3 years.. If you have to ask 'is this a bear market?' then the answer is no, it's just a correction. Don't worry, when there's a bear market, you won't miss it! Twenty something years in the market. The worst bear market was 1929 - 1332, 4 years. Large-cap stocks lost about 80% of their value in that time. Another major bear market was 1973-1974, 2 years. Large-cap stocks lost almost 40%of their value. Then 2000 - 2002, 3 years, large-cap stocks lost about 35% of their value. These major bear markets occur approximately once per generation. They are characterized by a takover of inexperienced investors who bid up the prices of stocks, creating a speculative bubble, which then bursts and results in a crash. I address this in chapter 5 of my book. The true enemy of the long-term investor is inflation, not market crashes. Portfolios can recover after a crash. But, inflation represents a permanent loss of purchasing power. To get a good overview of stock returns, download my free eBook and go straight to chapter 21. It will giver you a nicer primer on bear markets. Click on my profile and read my info to get the website. The book is in PDF format and available free to anyone. |
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