Is a bear market looming?

“So far 2016 has proven to be an uneven year for investors, with some roller-coaster market swings that left more than a few stomachs churning. For markets to dive into bear territory (down 20%) and stay there, it’s almost imperative that we tip into recession or depression. Take a look at this chart:

Represented by the S&P 500® Index from 1926-2015. Index returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Indexes are unmanaged and cannot be invested in directly.

It shows calendar-year S&P 500 index returns from 1926-2015, and the rates of return. The years with the worst returns – drops of 10% or greater – almost invariably correlate to some kind of financial calamity. The exceptions are 1966, which was just a bad year for stocks, and 1941, the dawn of World War II. The very worst years (1931, 1937, 2008) correlate with the start and middle of the Great Depression, and the recent Great Recession”.

 

Source: http://blog.russell.com/bear-market-looming/?utm_source=Russell+Investments+List&utm_campaign=cb347b1441-corp-us-blog-rss-posts&utm_medium=email&utm_term=0_29d6dfcb29-cb347b1441-372567245

Disclosure: This website is a collection of public articles, and this communication is for informational purposes only. Nothing herein should be construed as my opinion, solicitation, recommendation or an offer to buy or sell any securities or product, and does not constitute legal or tax advice. The information contained herein has been obtained from publicly available sources believed to be reliable but we do not guarantee accuracy or completeness. Do not act or rely upon the information and advice given in this publication without seeking the services of competent and professional investment, legal, tax, or accounting counsel.

 

 

 

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