7)
During secular bull markets, the investment of buy and hold can be very effective.
The Dow's P / E has averaged 16 during the past three years, in the middle of the range
during secular bull markets.
During this secular bull market - a term that denotes a bull market lasting many years - the Dow Jones Industrial Average (DJIA) averaged 16.8 % annual returns.
During the secular bull market years of the 1980s and 1990s, the general slope of the advance matched that of the 1940s and 1950s, and now the sideways movement is proceeding roughly according to the script.
In fact,
during this Secular Bull Market since 2013 we've already had a 14 % retracement in 2015/2016 on the DJIA and S&P 500, and an 18 % fall on the NASDAQ.
For example, the average yearly gain
during the secular bull market of 1982 - 2000 was about 18 % per year.
Not exact matches
Reinvesting
during some of these low cycles of a
secular bull market is also a good idea.
Clearly, silver underperformed gold
during the first two years of each of the last three cyclical precious - metals
bull markets that occurred within
secular bull markets.
Based on the long - term chart pattern, TLT is still in a
secular bull market (despite the sharp decline
during the past 15 months).
My Latch and Hold investigations showed that it has been a good idea to maintain a high stock allocation
during the upward trend of a long lasting (
secular)
bull market.
The main argument of the post — one that has been made many times before — is that passive investing is fine
during bull markets, but it likely won't work going forward because «we are in a
secular bear
market that began in 2000.»
The main argument of the post — one that has been made many times before — is that passive investing is fine
during bull markets, but it likely won't work going forward because «we are in a
secular bear
market that began -LSB-...]
The traditional buy and hold / modern portfolio theory works great
during the roughly 17 year
secular bull market, as anyone can make money when the overall trend is up.
During secular bear
markets, there are shorter - term cyclical
bull (upside) moves, but the general trend is sideways and down.
I used Ed Easterling's definitions for the timing of long lasting (
secular)
Bull Markets and Bear
Markets during the twentieth century.
There is one
during long lasting (
secular)
bull markets.
One distribution applies
during long lasting (
secular)
bull markets, the other
during long lasting (
secular) bear
markets.
Why an investment strategy that worked
during a
bull market may not work in a
secular bear
market
Earnings Growth Forecasts May Require a Robust Economic Recovery
Secular Bear
Markets and the Volatility of Inflation Trading Volume Separates
Bull Markets from Bear Rallies A Stock
Market Rebound Closely Linked with Economic Data Surprises
Market Valuations
During U.S. Recessions Stock
Market Valuations Following the Great Moderation Will Global
Markets Take Their Lead from the U.S.?
As you can see, there were cyclical
bull and bear
markets during this long term
secular bear
market.