As I noted in my last research report, the stock market has appreciated significantly over the last 5 years. In fact, the S&P 500 is up over 100% since 2009 and the biggest year of this run was the 29.6% appreciation that occurred in 2013. According to my work, we have been in a secular Bull Market since 2009. Obviously, these gains solidify that claim that this is, indeed, a long-term Bull Market. However studying past Bull Markets shows that during times of long-term upwards moves the market does experience short-term pullbacks.
Since all of my client’s goals center around long-term asset growth and capital preservation, I must remain ever wary of the next Bear Market; even if it is short-term in nature. With this in mind, I’ve gone through every market cycle since 1871 and analyzed every Bull Market pull back of 10% or more in an effort to identify the characteristics that have set the table for those pullbacks.
My hope is that by knowing the market conditions that led to previous pullbacks, we can stay a step ahead of this market. I view this as hunting down these Bear Markets and being prepped and ready before they can hurt us.
Read the full report: A Bear Hunt