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.
Not exact matches
Though our investment horizon of interest is a complete
market cycle, we don't generally think in
terms of bull and
bear markets, because they can only be determined in hindsight.
This instance may be different in the near
term, but a century of evidence argues that the completion of the
market cycle will wipe out the majority of the gains observed in the advancing portion to - date (even without valuations similar to the present, the average, run - of - the - mill
bear market decline has erased more than half of the
market gains from the preceding bull
market advance).
Similarly, I expect that in the event of a general bull
market in stocks, the fund will not shine so brightly in
terms of relative performance., The math of investing would favour the fund, however, over several bull and
bear market cycles because, on a percentage basis, lost dollars are simply harder to replace than gained dollars are to lose.
In the next post of this series, we will show the actual outperformance of the S&P SmallCap 600 versus the Russell 2000 over the long
term, the higher returns and lower risk over different time periods, and through different bull and
bear market cycles.
For investors seeking long -
term investment returns in value - focused stocks over the complete investment
cycle (bull and
bear markets combined), with added emphasis on reducing exposure to general
market fluctuations in conditions viewed by the Advisor as unfavorable to stocks.
For investors seeking long -
term investment returns in the U.S. equity
market over the complete investment
cycle (bull and
bear markets combined), with added emphasis on reducing exposure to general
market fluctuations in conditions viewed by the Advisor as unfavorable to stocks.
Though our investment horizon of interest is a complete
market cycle, we don't generally think in
terms of bull and
bear markets, because they can only be determined in hindsight.
On
market cycles: People think of
markets in
terms of either bull
markets or
bear markets — one or the other.