I discovered, through digital search, that the practice of using precise definitions for down markets -- denoting a "correction" as a 10 per cent decline from a peak and a "bear market
" as a 20 per cent decline -- is only a little over 30 years old.
The Nasdaq is already in a bear market
and the Dow Jones industrial average is very close.
Proper, active, fixed income management is essential to navigating a bear market
That is particularly true when you consider what happens during even the worst bear markets
. That is, the market drops, but only temporarily.
In fact, one of my bosses was able to buy a house in an exclusive village using the gains from the sale of the stocks he accumulated during the bear market
They utilise financial models and computer driven decision making processes that achieve solid investment performance whichever way financial markets move - be it a bull or bear market
. These funds aim to make our portfolios more robust, and continue to generate positive absolute returns even during adverse financial market conditions.
The 7 asset diversified portfolio outperformed the 100% US Stocks portfolio in each of the last 6 bear markets
since 1980, and outperformed the traditional balanced portfolio in all but one of the last 6 bear markets
The average bear market
lasts 15 months, with stocks declining up to 32 per cent.
Gross expects the 10-year Treasury will end this year with a yield above 2.7%, capping a "mild bear market
total return of zero to -1% for most bond portfolios."
Historically, bear markets
have proven to be buying opportunities.
Reasons to be optimistic about oil in 2017 seem to have all but slipped away, and it looks as if Crude is in a bear market
Finally, nine falls in a row had the statisticians reaching back to 1980, towards the end of a 12-year bear market