In re: "Bear markets have been known to run for years, slowly
eating away at the hangeroners.
Jim, that's an excellent point doubtless lost on legion callow
money managers who, per an accident of birth, have never suffered
through a bear market of any consequence or severity. To be sure,
these kids- fiduciaries of the nation's wealth, bedecked in their
expensive suspenders and collecting six or seven figure incomes
for underperforming the market averages during a rampant bull
run- would likely not discern a bear market if it fell on their
heads.
History shows that markets can tread water for sustained periods
and that genuine bear markets, as you aptly note, can be ugly and
protracted. For example, in 1929 the DJIA peaked at 381.17 and
imploded to 41.22 in 1932. It took 25 years, to the end of 1954,
until the DJIA eclipsed the 1929 high. Then, in early 1966, the
DJIA climbed intraday above 1000 for the first time in market
history. DJIA 1100 was not breached until 17 years following, in
1983. Meanwhile, a brutal 1970's depression had wreaked havoc
on the market which bottomed in December 1974 at about DJIA
577 or so, if memory serves.
What will become of the unseasoned suspender set whose lives and
fortunes have been gift wrapped by the bull? In a post new era,
they may have to forego that next expensive cigar and actually
work for a living. |
