Not exact matches
Since 1946, the stretches when world's most watched
index grows (e.g., between corrections and
bear markets) have
averaged 18 months.
Although U.S. equity
indices are hovering near all - time highs, the
average stock in the Russell 3000 - which covers 98 % of the investable market - is already in «
bear market» territory.
Generally, a
bear market happens when major
indexes like the S&P 500, which tracks the performance of 500 companies» stocks, and the Dow Jones industrial
average, which follows 30 of the largest stocks, drop by 20 percent or more from a peak and stay that low for at least two months.
Does the fact that the
average stock is already in a
bear market mean the
indices have to catch up and move lower?
Over the past 5 years, still with no 20 %
bear market completed, the total return of the S&P 500
Index has
averaged 7.5 % annually.
Based upon the above, and assuming 2014 may replicate the
average performance of the 2000 and 2008
bear markets, the Dow
Index could conceivably decline to about 12300 by yearend (2014).
And if we assume the DOW
Index is indeed peaking, and that the subsequent
bear market might be the
average decline of the last two
bear markets in magnitude and time duration, then the DOW
Index could conceivably drop to 9000 by the Ides of March of 2016.
In all, the Dow Jones Industrial
Average, which has about quadrupled since the
bear market lows of early 2009, pushed ahead by more than 25 % in the just - ended 12 months, with the S&P 500
Index close behind with a full - year advance of about 20 %.
The crisis lasted through the 1990
bear market (which brought the Value Line
index down to its 1987 low and cut the Transportation
Average in half) and abated by mid-1993, when the RTC had liquidated or paid off the debts of 90 % of the failed institutions it had taken over.
To investigate, we compare SACEMS monthly performance statistics when the S&P 500
Index at the previous monthly close is above (bull market) or below (
bear market) its 10 - month simple moving
average.
The BMO Asset Allocation Fund and the RBC Monthly Income Fund (series F) outperformed the
index portfolio on three important benchmarks — the extent of their
bear market losses, the magnitude of their subsequent recovery between March and June of this year, and their five - year
average returns.
Moving
average: Using the 200 - day moving
average of the S&P 500
index to define our regimes as bull when the market is above it and
bear when it is below it is a good method.
... according to Vanguard: In four out of seven
bear markets since January 1973, the Dow Jones U.S. Total Stock Market
Index beat the
average actively managed fund.
One of the main arguments against «active management» is that the
average active manager loses to
index funds — but this is like saying the Pope is Catholic or
bears crap in the woods.
Tags: 2007 - 2009
Bear Market, After the Fact, Analyze, August 4 2011,
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Average, Great Depression, Investors, Market Bottoms, October 19 1987, Panic Selling, Ring a Bell, Stock Market Declines, Traders, US Stock Market, VIX, Volatility
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Our research showed that, on
average, actively managed large - cap stock funds lost less during recent
bear markets than large - cap
index funds.
But there's a real definition that's generally agreed on: A
bear market is a downturn of 20 % or more, lasting at least 60 days, in any broad equity
index such as the Dow Jones Industrial
Average, the S&P 500, or the Nasdaq.
Transports are in a
bear market, but the other
indexes and
averages are not.
(The UK market's high
average return can almost be entirely explained by a couple of months following the 1973 - 1974
bear market where the MSCI UK
index rocketed higher as investors anticipated the end of that period's recession.)
Tags: 2011 Third Quarter,
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