Donald, wise comments. While we all hope the belief that "once people all believe we are in a bear market, we are probably near the low", and since everyone on the news says we are in a bear market (how short their memory when just 3 mo ago we were in the biggest bull market of all time). We may very well be near the lows. A bear market, as you say, is one that has poor fundamentals in addition to a downtrend of the DOW. They take, again as you said, a decade to recover. People are thinking that this "bear market" will stabilize over a few months and then recover. That is not a bear, it is a correction.
As you say, 10% is a correction, 20% is a bear, is probably old rules. New rules are probably 10% is usual, 20% is a correction, and it takes 30% to 40% on companies that produce profits (not dot coms) to make a bear. When unemployment is at an all time low, that is not a bear. |
