Australian Stocks To Choose In A Bear Market
Bear Market – A Bear market is one that is going down.
If we look at the typical historical performance of bear markets, we can see that this current market has exceeded the normal bear market behaviour.
According to Goldman Sachs JB Were, since 1960 there have been 13 bear markets in which the Australian market has fallen more than 15%.
On average, an Australian bear market falls 27% at its lowest, while the length of time to hit those lows is 41 weeks.
On this occasion, the credit crunch variety has already seen the local market fall 34% at the lows, while it took 46 weeks to get to these lows.
Of course, we must remember that an average smoothes out the worst of the crashes, so there is no reason to expect the market to bounce because it is worst than average. But there is reason to believe we may be nearing the bottom.
Learn more about what Australian stocks to choose in a bear market.
Australian Stocks To Choose In A Bear Market
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