1 / 2

BULL & BEAR MARKETS

BULL & BEAR MARKETS. S&P/TSX INDEX to June 2003. 460. 300. 288% 81 months. 253% 61 months. 203% 90 months. 220. 140. 109% 24 mos. 82% 40 months. 81% 43 months. 85% 48 mos. 44% 25 mos. 63% 32 months. 100. % Change (log scale). 40. 16% 6 mos. 8% 9 mos. 0. -15%

stacy
Download Presentation

BULL & BEAR MARKETS

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. BULL & BEAR MARKETS S&P/TSX INDEX to June 2003 460 300 288% 81 months 253% 61 months 203% 90 months 220 140 109% 24 mos 82% 40 months 81% 43 months 85% 48 mos 44% 25 mos 63% 32 months 100 % Change (log scale) 40 16% 6 mos 8% 9 mos 0 -15% 8 months -17% 6 months -21% 6 mos -20% 10 mos -25% 4 months -30 -26% 17 mos -25% 13 months -28% 4 mos -35% 11 months -39% 12 months -38% 13 mos -60 Jun 03 Source: Mackenzie Financial (Datastream) reprinted June 2003

  2. BULL & BEAR MARKETS S&P/TSX INDEX to June 2003 THE RISKS AND REWARDS OF INVESTING • This chart represents the bull and bear markets in the S&P/TSX since 1956. All bars above the line are bull markets; all bars below are bear markets. • For the purposes of this illustration, a bull (bear) market is defined as a positive (negative) move greater than 15% that lasts at least 3 months. • The first bar represents a bear market which, at its lowest point, dropped to -26% and lasted 17 months. This was followed by a bull market rising 85% and lasting 48 months. • Since 1956 there have been 10 bull markets and 11 bear markets. As can be seen from the chart, bull markets typically last longer and provide a more significant percentage change. • Bear markets during this period have averaged -26% and lasted only 10 months. Bull markets during this period have averaged 122% and lasted 45 months. This is the reward for accepting the risk of bear markets. • INVESTOR BEHAVIOUR • According to the chart, markets spend more time in positive territory (bull) than negative (bear). • Bull markets are, on average, longer and more intense, providing a more significant percentage change. • The bear markets are, on average, more brief, and yet engender fear. It is during these periods that we should be investing. • Investor discipline during the bear markets is critical.

More Related