Tuesday 20 January 2015

Bear Market Lessons from History

While the financial media tends to be absolutely infatuated with stocks hitting new highs every day, we would do well to pay attention to some ongoing bear markets, Charts are courtesy yahoo finance and marketwatch.com:
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1) Japanese stocks continue to languish under the effects of deflation following a well over 26 year old bear market, down over 45% from the highs set in 1989.



2) Despite some great innovation out of the U.S from the likes of Apple, Google, Facebook e.t.c the #NASDAQ continues to remain in a 15 year bear market near its highs set in 2000.



3) Despite going parabolic yet again, Chinese stocks continue to remain in a 7 year bear market down well over 50% from the highs set in 2008.
SSE Composite Index (000001.SS)
4) US bank stocks are entering a 7 year bear market despite all the #QE money and super low interest rates down over 30% from their highs set in 2008.



5) The #Euro is also in a 7 year bear market down over 25% against the dollar from it's highs set in 2008.



6) #Gold and gold ETF's continue to be in bear markets down well over 35% from their highs set in 2008.



7) The more recent casualty #oil and oil ETF's are down well over 60% from their highs set in 2008.



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It is well worth noting that it is no strange coincidence that there are major bear markets in several key asset classes and despite recent bear market rallies caused by the FED's QE for ever policies the hibernating bear is all set to emerge with a vengeance.

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