Bear Market Declines

Bear Market declines have been occurring on an average of every 5.2 years and they last for average duration of 19 months. But what else do you really need to know about Bear Market declines?

Plenty...if you plan on keeping your Bull Market profits. It's not enough to make money in the Bull Market, that's actually the easy part as anyone can profit from a Bull Market.

It is critically important that you read every word of this article because what happens in a Bear Market is critical to your stock market investment success.

  • What is the average Bear Market decline?
  • How does the Bear Market affect your "buy and hold" strategy?
  • How can you profit from the Bear Market?
  • When will the next Bear Market occur?

You'll find the answers to all these questions about the Bear Market and more.

But First...A Bit of Trivia

  1. Why is it called the Bear Market?
    Because Bears make a downward striking motion with their paws. And the Bull? An upward striking motion with their horns.
  2. From 1980 through 1989, what days have been more important for investors; the 10 best days or the 10 worst days?
    See the answer at the bottom of the page. (Yeah, I know, kind of sneaky huh?)

Bear Market Definition

The simplest Bear Market is definition is when the S&P 500 Index loses 20% or more of it's value. Other indices can be in a Bear Market at different times but since the S&P 500 makes up approximately 70% of the total stock market value, this is the one to worry about.

Bear Market Frequency

Between 1929 and 2002, there have been 14 Bear Markets with an average of 39% slashed off the value of stocks. During this 74 year period, it took an average of 3.5 years to return to breakeven!

Every time an investor loses money in a down market, they lose invaluable time to reaching their financial goal. After eliminating overlapping Bear Markets, 41 years were spent suffering through a Bear Market or returning to break even. In other words, investors spend 2/3 of their time just to break even!

Bear Market Capitulation

People speak of Bear Market capitulation as though it is the "obvious" sign of the end of the Bear Market. While it's true that Bear Markets have frequently ended with a day or two of heavy selling, usually dropping the market by several percentage points, this "capitulation" is also very difficult to identify as it's occurring.

Hindsight makes it easy to spot this capitulation but let's face it, by the time it happens, the average investor is far too shell shocked to even think about re-entering the market. The unfortunate reality is that most investors suffer through the worst of the Bear Market and then fail to capitalize on the subsequent Bull Market.

The Next Bear Market

So when will the next Bear Market occur? Well, if history is any guide, every 5.2 years...but that's not a real answer is it? Then to say that no one knows for certain is probably not going to help you either, is it?

If anyone knew with 100% certainty, they would certainly rival Bill Gates for wealth supremacy. But there are better ways to invest wisely. One that doesn't need to predict the next Bear Market or Bull market.

Profit From the Bear Market

Techniques are available that increase your odds of taking advantage of that critical 1/3 of the time when you are actually making a profit. Or better yet, making a profit while others are suffering through the Bear Market.

These profit techniques aren't revolutionary but they are effective when managed properly. We have the expertise to manage your money so you can profit from the Bear Market and the Bull Market. Utilizing our proprietary Strategy, we position you to earn a profit during the Bull Market and then make additional profit from the Bear Market.

Sound too good to be true? It's not, it's real and it's available to you today!

Call us today to learn how we can help you earn a profit in both directions. Or download a FREE copy of our stock market investment book to learn more -

Trivia Answer

If you missed the best ten days of the stock market from 1980 to 1989, based on the S&P 500, your return would have fallen from 17.6% to 12.7%. If you missed the 10 worst days, your return would have increased to 26.6%.

In addition, missing both the best and the worst generated a 21.1% return, or a 20% better performance than buy and hold results. The reason this is true is due to the the dramatic impact bear markets have on buy and hold investments.

That's why we offer a better way to invest!

Amazing History Lesson

Learn from the history of the stock market and the investors before you. You see, the four most dangerous words in investing are "it's different this time". Don't fall victim to this myth!

The reality is that it isn't different this time! Investing in mutual funds is just as difficult today as it's ever been! Learn the truth about mutual fund investing...learn the history and you'll see the future!

Learn how the stock market cycles can destroy your total investment return or make it grow like never before!


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It should not be assumed that future recommendations will be profitable or will equal the performance of the past.

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