4 Major Bear Markets of US SP500 over 80 years

Here is the 4 Major Bear Markets that hit the US SP500. You can see the drastic selloff experienced during each time.

Make no mistake, the bear market do come. Wud it be a good time to pick some good quality stock to own. Like Warren Buffett said when asked by Forbes magazine. Forbes: ‘How do you feel?’ Buffett: ‘Like an oversexed guy in a whorehouse. Now is the time to invest and get rich’. – At the bottom of the bear market in October 1974.

A. KLCI Bear Market Historical

Here is a older chart from Mr. Pong Tiew Siew of Jupiter Securities Sdn. Bhd. After every bull market, it is preceded by bear market and KLCI is no different. A bear market may see our KLCI correct between -30-40% and the below table highlight the bear market is ready to make its appearance in 2012.

B. Bear Market Table for KLCI over 33 years of history

Here is a table analysed by Martin that the year preceding after we see a bear market in 2008/2009, we wud see a market rally (bull market) in 2009-2010. We are coming to an end or residual of the bull market for Year 2011. The table speak for itself below.

At Year 2011, the average gain for the 3rd year of bull market is +2-3% and as of 8 Dec 2011, KLCI is down -3.0% and the forecast hold so far. Let’s review it back in Q2, 2012 !

C. What can we invest safety in this KLCI Bear Market ?

Read our Dec 2011 Stock Market – Searching for Safety in 2012. Click here.

Also view video podcast Dec 2011 Stock Market. Click link.

Luv to hear your comments.

- Martin -