DD Digest: Bear Market Knowledge & Extremely (Good?) Fear
Good morning investors, here's the latest issue of DD Digest:

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One Stat About Bear Markets to Keep in Mind
On Monday, we officially entered a bear market, as the S&P dropped below the arbitrary 20% threshold. It’s certainly not the first bear market of the century — it’s not even the first of the decade (although the pandemic downturn was the shortest on record, it was still a bear).

In light of this new bear, here’s a stat to keep in mind as we anxiously wait for the bulls to come home:

The typical bear market takes 3.1 years to completely recover, dating back to 1929.

But, in terms of length, every bear market is different.

The COVID-19 bear took 6 months to recover.

The housing market crash took 5.5 years to recover.

The dot-com bubble burst took 7.2 years to recover.

As the adage goes, past performance is no guarantee of future results — but the key takeaway is that we may be in rough waters for a considerable amount of time.

Or maybe we won’t be?
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Two Words of Encouraging Market Sentiment: Extreme Fear
A bear market typically doesn’t inspire much confidence. According to CNN's Fear & Greed Index...

Continue reading the full post here.

Joey Hirendernath's avatar
Thanks for this weekly report Carter. It's helpful to know that there may be a silver lining - "When fewer than 5% of the index’s stocks are above their 50-day moving averages, the index goes on to gain 23% for the following year on average dating back to 1990, according to Truist. And however large the gains are, the index rises every time."

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