Query whether such an all equity portfolio will perform as well
in a secular bear market in equities, which I suggest to you we are in.
Not exact matches
I've argued now, for longer than I wish, that we are
in a
secular bear market driven by global imbalances.
It is generally agreed on that the period without many 2 % down days
in the past (the late 60's and 70's) was part of a
secular bear market.
So if you assume that the pattern holds, we are either
in a
secular bear market or we will get a large decline once we get a 2 % down day.
If we are
in fact
in a long, post-Bull trading range — see our 100 - year Dow chart — than this is year ~ 5 of what could be a 10 - 15 year
secular Bear market.
In response to a standing request, here is updated comparison of four major
secular bear markets.
However, we are not
in the early stages of a new
secular bear market for commodities (or the ETFs which represent those commodities like XLE).
I think the
secular equity
bear market we are currently
in could continue for several more years, thus, lower volatility dividend stocks may offer some protection while still providing equity exposure.
Since the Internet bubble burst
in 2000, stocks have been
in what is called a
secular bear market.
As the
secular bear market drags on, investors become more and more discouraged with their buy and hold positions and they begin to lose faith
in the system, their strategy and stocks
in general.
The dollar should remain
in a
secular bear market for years due to its negative fundamentals.
The bottom line is that we expect U.S. stocks to stay
in the
secular bear market that started
in 2000 for many years to come.
Some investors have known for over a decade that we are
in a
secular bear market.
However, after enormous bailouts of the largest financial institutions
in the country, as well as the auto industry, and even more monetary ease than
in 2003 (accompanied by TARP, the stimulus plan, QE, and QE2); we started another cyclical bull
market within the
secular bear market.
The stock
market has been
in a
secular bear market since 2000.
In contrast, the recent «bull market» (probably better viewed as an upward correction in an ongoing secular bear market) started at valuations too rich to justify an aggressive investment positio
In contrast, the recent «bull
market» (probably better viewed as an upward correction
in an ongoing secular bear market) started at valuations too rich to justify an aggressive investment positio
in an ongoing
secular bear market) started at valuations too rich to justify an aggressive investment position.
Following the topping process
in 2000, a prototypical
secular bear market began that continues today.
Of course we were
in the midst of a
secular bear market in stocks then.
The counter to that is that this is merely a cyclical bull
market in the context of the
secular bear market that started
in 2000.
Our Investment Philosophy is built on the belief that we have been
in a
secular bear market for the past decade and it may last several more years.
In the introduction to the last Bull Bear Market Report, I further developed the thesis that an impulsive equities bull market began in November 2012: Most analysts continue to make the mistake of believing that a secular bull market started in March of 200
In the introduction to the last Bull
Bear Market Report, I further developed the thesis that an impulsive equities bull market began in November 2012: Most analysts continue to make the mistake of believing that a secular bull market started in March of
Market Report, I further developed the thesis that an impulsive equities bull
market began in November 2012: Most analysts continue to make the mistake of believing that a secular bull market started in March of
market began
in November 2012: Most analysts continue to make the mistake of believing that a secular bull market started in March of 200
in November 2012: Most analysts continue to make the mistake of believing that a
secular bull
market started in March of
market started
in March of 200
in March of 2009.
Given the fact that crude oil is probably
in the middle of a
secular bear market, this means USO will be probably never exceed its 2008 high @ 119.17.
In between were secular bear markets: 1966 to 1982, when the Dow went nowhere in nominal terms, but after inflation it lost about 75 percent of its valu
In between were
secular bear markets: 1966 to 1982, when the Dow went nowhere
in nominal terms, but after inflation it lost about 75 percent of its valu
in nominal terms, but after inflation it lost about 75 percent of its value.
In Asian and emerging
markets, commodity producers are
bearing the brunt of the downturn, but attractive values persist among well - capitalized, well - managed enterprises with good exposure to
secular growth trends.
In the secular bear market we're in, we can have earnings growth but no PE expansion meaning the companies «grow into» the new P
In the
secular bear market we're
in, we can have earnings growth but no PE expansion meaning the companies «grow into» the new P
in, we can have earnings growth but no PE expansion meaning the companies «grow into» the new PE.
Ed Easterling makes a powerful case that we are
in a
secular bear market.
Ed Easterling makes a powerful case that we are
in a
secular (i.e., relatively long - term as opposed to short - term, one or two decades as opposed to one or two years)
bear market.
3) The stock
market experiences extended periods of
secular bull
markets and
secular bear markets based on the trend
in P / E ratios, which is driven by the trend
in inflation.
As I noted
in Secular Bear Markets and the Volatility of Inflation, the uncertainty brought about by large swings
in inflation is often harmful to investors.
In each case the level of economic volatility grinded higher throughout the
secular bear market.
It is optimized for mid-range valuations
in a long lasting (
secular)
Bear Market.
The
market's valuation
in 2000 was so extreme that the resulting
secular bear has the potential to be more extended than others, unless the
market was suddenly to collapse to valuations near those where historical
secular bulls have started (where stocks have typically been priced to achieve 10 - year prospective returns near 20 % annually).
You can see the aftermath
in the next set of graphs, which show the same interaction of
market valuation and the volatility of inflation, but
in this case during the three
secular bear markets of last century, and the
secular bear market beginning
in 2000.
At
secular bear market lows, the Shiller P / E (S&P 500 divided by the 10 - year average of inflation - adjusted earnings) has typically been about 7, as we saw
in 1942 - 1950 and
in 1982.
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-...]
From a historical perspective, the 1966 through 1982
Secular Bear Market was the third one we have had since 1900 and was not overwhelming
in terms of loss, it simply meandered sideways virtually going nowhere for 16.5 years.
Right now, a fourth
secular bear market cycle is emerging
in the stock
markets, which may last over the next seven to ten years.
There have been three
secular bears in the U.S. stock
market — the period between 1906 to 1921, the Great Depression period of 1929 to 1949, and the stagflation period of 1966 to 1982.
Because
market technicians and economists believe we are in a «Secular Bear Market» which should last until the year 2020 or forecasters which see a «Major Stock Market Crash Coming for Stocks by September 2011 ``, the chart shows it's possible we could still fall another 38 % (721.42 points) inflation adjusted on the S&P 500 Index, bringing it to 610.99 — a level we have not seen since if it follows past secular bear markets since December 21,
market technicians and economists believe we are
in a «
Secular Bear Market» which should last until the year 2020 or forecasters which see a «Major Stock Market Crash Coming for Stocks by September 2011 ``, the chart shows it's possible we could still fall another 38 % (721.42 points) inflation adjusted on the S&P 500 Index, bringing it to 610.99 — a level we have not seen since if it follows past secular bear markets since December 21
Secular Bear Market» which should last until the year 2020 or forecasters which see a «Major Stock Market Crash Coming for Stocks by September 2011 ``, the chart shows it's possible we could still fall another 38 % (721.42 points) inflation adjusted on the S&P 500 Index, bringing it to 610.99 — a level we have not seen since if it follows past secular bear markets since December 21, 1
Bear Market» which should last until the year 2020 or forecasters which see a «Major Stock Market Crash Coming for Stocks by September 2011 ``, the chart shows it's possible we could still fall another 38 % (721.42 points) inflation adjusted on the S&P 500 Index, bringing it to 610.99 — a level we have not seen since if it follows past secular bear markets since December 21,
Market» which should last until the year 2020 or forecasters which see a «Major Stock
Market Crash Coming for Stocks by September 2011 ``, the chart shows it's possible we could still fall another 38 % (721.42 points) inflation adjusted on the S&P 500 Index, bringing it to 610.99 — a level we have not seen since if it follows past secular bear markets since December 21,
Market Crash Coming for Stocks by September 2011 ``, the chart shows it's possible we could still fall another 38 % (721.42 points) inflation adjusted on the S&P 500 Index, bringing it to 610.99 — a level we have not seen since if it follows past
secular bear markets since December 21
secular bear markets since December 21, 1
bear markets since December 21, 1995.
My own controversial perspective is that we are
in a cyclical bull
market, which is a part of a larger
secular bear market.
Today, we are
in a long lasting (
secular)
Bear Market with P / E10 around 15 or 16.
Since the
secular bear market started
in 2000, the
markets could be flat or trending lower until 2020, which could be the worst
bear market environment investors have ever seen since the last Great Depression.
I assumed that we are
in a long lasting (
secular)
Bear Market.
This is partly because it doesn't work well
in secular bear markets, and partly because investors let their emotions cause them to make poor decisions.
I decided to run some research that went back to 1950 and then back to 1928 which includes multiple
secular bull and
bear markets to determine whether the «Sell
in May and Go Away» strategy had an edge or not and, if so, how good an edge.
Adjust your Expectations and Realize that we are probably
in the midst of a
secular bear market for stocks.
Run a3 starts at today's valuations (P / E10 = 27.3)
in a
secular (long lasting)
bear market.
If we include the additional assumption that we are already
in a
secular Bear Market, then the BEAR MARKET STOCK - RETURN PREDICTOR will give more accurate predicti
Bear Market, then the BEAR MARKET STOCK - RETURN PREDICTOR will give more accurate predic
Market, then the
BEAR MARKET STOCK - RETURN PREDICTOR will give more accurate predicti
BEAR MARKET STOCK - RETURN PREDICTOR will give more accurate predic
MARKET STOCK - RETURN PREDICTOR will give more accurate predictions.
Runs a1 to a8 on my Simplified Retirement Trainer A start with today's valuations P / E10 = 27.2 and today's TIPS interest rate of 2.2 % while
in a long lasting (
secular)
Bear Market.