The potential for capital gains during bull market cycles is astounding however keep in mind that those capital gains can turn into capital losses
during bear market cycles like we saw during the 2007 - 2008 financial crisis.
With the C Fund you won't run the risk of your money being eroded by inflation the only considerable risk you are taking is having your money invested
during bear market cycles.
Not exact matches
However,
during the down
market cycles (
bear), the index beat only 34 % and 38 % of its active management competitors.
Investors must be willing to sell stocks and turn gains into cash
during rallies that can then be used to buy stocks at bargain prices
during this long - term
bear market cycle.
Examining funds that have been around for at least 1.5
cycles (since October 2002, oldest share class only), the following delivered 50 % or more total return
during bull
markets, while limiting drawdowns to 50 %
during bear markets, each relative to S&P 500.
Pattern
Cycles suggest effective short sale tactics
during individual stock
bear markets.
The examples above highlight this strategy by demonstrating the potential of these accounts
during bull
markets and the security they provide
during bear cycles.
Bear market strategy funds are mutual funds designed to profit
during falling or down
market cycles.
But robo - advisors have gained popularity in recent years
during a period of relative strength on the stock
markets, in part by
marketing toward younger clients who may not have the scars of
bear markets of the past to remind them they're a natural part of the
market cycle.
They often get you out of the
market during bear markets and get you back in to ride the next bull
cycle.
I noted back in 2007,
during a similar period of frustration, that less than half of the typical bull
market gain is retained by the end of the subsequent
bear market - «Once stocks become richly valued, the remaining gains achieved by the
market are almost always purely speculative - they are generally erased over the remaining course of the
market cycle.
This approach generally has been vindicated in the past, as value investors tended to outperform a majority of money managers over full
market cycles; and this outperformance has been achieved principally
during bear markets, by losing less than most.
Trend following, as I have discussed vehemently
during my presentations with the STA and MTA, has to be judged over a full economic
cycle (or a bull -
bear market cycle, if you wish).
Using the same methodology, you would have achieved phenomenal risk - adjusted capital appreciation
during the bull
market portions of each bull -
bear stock
cycle.
If your talking general residential there are too many variables to say when your specific property in your specific
market during which local economic
cycle will
bear the best rental phase.