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IPFS News Link • Economy - Economics USA

In 50 Years This Has Never Failed To Trigger A Bear Market

• Zero Hedge

What's more analysts, renowned for their Pollyannish expectations, can't seem to find it, either.

So I thought it might be interesting to look at what the stock market has done in the past during earnings recessions comparable to the current one. And it's pretty eye-opening. Over the past half-century, we have never seen a decline in earnings of this magnitude without at least a 20% fall in stock prices, a hurdle many use to define a bear market.

1 Comments in Response to

Comment by PureTrust
Entered on:

A Bull market happens when people think and act like prices in the market are going up. A Bear market is the opposite - people think the prices will fall. The wise investor doesn't base his thinking on currency as money. The wise person looks at everything as money. Once a person gets it into his head to look at everything as money, he can look for a bull market all the time. - A gold and silver investor might watch the price of gold and silver. He might buy low and sell high. But if he watches the relationship between gold and silver, he increases his gold/silver property by exchanging gold for silver, or vice versa, no mater what the currency price of either are. Then he has more of one or the other to trade off for money when the time is right.



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