Reinvesting during some of these low
cycles of a secular bull market is also a good idea.
Not exact matches
When valuations move from depressed levels to historical extremes over the span
of several
market cycles, the result is a «
secular bull market» and headlines about permanently high plateaus.
Based purely on long - term
cycles, a successful argument could be made that we have been in a
secular commodity
bull market since the turn
of the century in 2000.
Essentially, a
secular bull period comprises several cyclical
bull - bear
cycles, where each
bull market achieves a successively higher level
of market valuation at its peak.
Secular bear
markets also involve a series
of bull - bear
cycle, but with each bear
market trough achieving successively lower levels
of valuation.
An average bear
market within a «
secular» bear
market period (a period generally about 17 - 18 years, where valuations begin at rich levels and achieve progressively lower levels over the course
of 3 - 4 separate
bull - bear
cycles) is about 39 %, and wipes out about 80 %
of the preceding
bull market advance.
As you can see, except for the
secular bull market of 1921 - 1929,
secular market cycles last on average 16 to 20 years!