The higher volatility
of bear markets tends to chop up these funds over time.
Unlike panic lows based on indiscriminate selling, which generally characterize lows that occur within a bear market, the final lows
of a bear market tend to exhibit a lot of «positive divergences.»
Not exact matches
Long
bear markets, defined as a drop
of 20 percent or more in stock prices over the course
of months, do
tend to correlate with recessions.
Though there's a great deal
of variability across
bear markets, they
tend to last somewhat longer than a year, and take the
market down by about 32 % on average.
Retail securities
tend to track the
market as a whole but with a greater degree
of volatility, resulting in stronger gains during bull
markets but larger losses during
bear markets.
Ned Davis Research has looked at many
of the major
Bear markets worldwide for the past Century, and found that they
tend to last about a third as long as the preceding Bull.
It also rationalizes why
Bear markets tend to be sharper — and much shorter — than Bulls: The Crash
of «29 was followed by 4 consecutive down years (a feat not matched since).
«A short, sharp break off
of all - time highs is never how
bear markets begin» adding they
tend to fall by 2 to 3 percent a month over their entire duration, with most
of the decline coming in the last 40 percent.
Money supply rising Broad money supply
tends to be increasing at the turn
of bear markets.
COMPETITORS «It's what people in that segment want — finally something exciting... Finally, something different... Because whatever you did after your third 7 Series or S - Class you
tend to get a little
bored...» These are the sentiments
of Porsche's worldwide head
of sales and
marketing and board member, Klaus Berning, so no prizes for guessing the key targets
of the new Porsche gran turismo.
Specifically,
bear markets don't typically end in a crescendo
of fear and panic, but more often on a feeling
of «despair and disillusionment,» while strong bull
markets tend to feature heavy trading volume.
The largest losses during
bear markets tend to come on the heels
of overbought advances, and our measures presently don't offer happy green - shoot optimism that the
market's difficulties are now behind it.
Bear markets tend to experience a series
of separate lows on what I'd call recognition, fear, and revulsion.
Bull
markets — periods in which prices as a group
tend to rise — and
bear markets — periods
of declining prices — can lead investors to make irrational choices.
But it's important to keep in mind that stock
market declines triggered by the onset
of a recession
tend to be longer and the losses more severe than the results for the «average»
bear market.
This makes the duration
of the current
bear market shorter than the average recession - induced
bear market, which
tend to be longer in duration than «stand alone» declines.
You might expect that when the
market is gradually working down from a high level
of overvaluation, bull
markets would
tend to be shortened, and
bear markets would
tend to be deeper.
As the guys at Nautilus Capital note, cyclical bull
markets within secular
bears have
tended to average just 26 months, with an average gain
of 85 %, while cyclical
bears within secular
bears have averaged 19 months, with steep average losses
of -39 %.
LSV also showed that in periods
of stress — recessions,
bear markets, etc. — when risky investments
tend to be punished and safe investments
tend to be hoarded, value stocks consistently beat glamour.
Of course, the opposite is that small - caps
tend to underperform large - caps during
bear markets.
These types
of strategies
tend to get killed in
bear markets.
In this way they are vastly superior to the highly leveraged pigs favored by book - to -
market, which
tends to serve up heavily leveraged slivers
of somewhat discounted equity, and leaves you to figure out whether it can
bear the debt load.
Retail securities
tend to track the
market as a whole but with a greater degree
of volatility, resulting in stronger gains during bull
markets but larger losses during
bear markets.
When considered together, the lowest sustainable withdrawal rates (which give us our idea
of the safe withdrawal rate)
tend to follow prolonged bull
markets, while the highest sustainable withdrawal rates
tend to follow prolonged
bear markets.
I arrived at a duration
of 25 years which I think is both quantitatively satisfactory and intuitively correct since the global stock
market tends to have a very low probability
of multi-decade
bear markets.
«In a bull
market, we don't
tend to care that our portfolio investments seem to behave the same, but I believe this
bear market has uncovered a long - term problem,» said Jerry Verseput, a financial planner in El Dorado Hills, Calif., noting that technology and globalization have diluted the effectiveness
of diversification based on company size and location.
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.
Full - blown
bear markets with losses exceeding -20 %
tend to come along at least once per decade or so, while
market corrections
of at least 10 % have occurred roughly every other year, on average.
The
Bear Markets of 1946, 1957, 1906, 1962, 1966, 1974, 1987, 1990, 1998 and 2002 all ended in October — December, January and July have also
tended to be the three
of the four best months
of the year to be invested in the stock
market.
Low - beta strategies
tend to outperform in
bear markets, yet have the potential for long periods
of underperformance.
During that time the
market demands its version
of the classic dog - and - pony show; artists and galleries who are better equipped to satisfy the appetite for hype and trend generally survive the longest in the rodeo, and those with the long view
tend to, well, take a long time to
bear fruit — both commercially and critically.»
The stock
markets tend to be turbulent and a
bear phase can result in the value
of investments going down suddenly.