LOL. What sort of sale are you looking for? 20%+
You save your cash for a sale.
Trying to 'time' buying into a Bear Market is quite difficult. You would have to predict bottoms for Internet Stocks, Strippers in Florida owning 4 Condos (Housing Crisis), and a Global Pandemic (COVID).
You could have timed the Federal Reserve increasing rates. Econ 101: Interest rates go up, Stocks come down. It was slightly obvious in my Financial Tech industry that too many crappy, me-too companies were getting funded. And Web 3.0, NFTs, crypto trading companies and incomplete blockchain initiatives were complete Sh-t. And people were dangling $300-$600k salary +++ jobs to very marginal candidates in the Bay Area. It was 2000 all over again that no Millenials, Gen Z, and some Gen X did not experience firsthand.
Kamala will likely continue the Biden policies that led to record-high stock indexes. And assume the Fed will just start ramping up rate cuts.
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The Bear Market of 2000-2002: Dot Com Bubble
- Bear Market Duration: 31 months
- Maximum S&P 500 Decline: 49%
- Time to New Bull Market: 56 months
The bear market that began in March 2000 was triggered by the bursting of the Dot-Com bubble.
Fed Chairman Alan Greenspan famously mocked excess enthusiasm for tech stocks as “irrational exuberance.” But investors stayed bullish amid historically low interest rates and prolonged stock market gains throughout the 1990s. In the late 1990s,
tech stock valuations soared to unsustainable highs.
When the Fed began raising interest rates in 1999 and 2000, tech stocks simply couldn’t maintain their bubble valuations. After 2000, the S&P 500 took more than four and a half years to recover to new all-time highs. The tech-heavy Nasdaq took an incredible 15 years to fully recover from the post-bubble bear market.
The Bear Market of 2007-2009: Global Financial Crisis
- Bear Market Duration: 17 months
- Maximum S&P 500 Decline: 56%
- Time to New Bull Market: 49 months
The bear market that began in October 2007 is the most severe bear market in the history of the S&P 500. It emerged from the bursting of the subprime mortgage bubble and the
global financial crisis.
In the years leading up to the crisis, financial institutions had overleveraged their balance sheets with complex securities made up of bad mortgage loans. Investors looked on helplessly as major investment banks Bear Stears and Lehman Brothers collapsed. That sparked fears about the stability of the entire global financial system. The S&P 500 dropped 56% during the resulting bear market.
The Bear Market of 2020: Covid-19 Pandemic
- Bear Market Duration: 1 months
- Maximum S&P 500 Decline: 34%
- Time to New Bull Market: 5 months
The bear market of 2020 was associated with the Covid-19 pandemic and associated U.S. recession. The recession was unique in that it was artificially created by mandated government business shutdowns.
Stock prices crashed in February and March 2020 over concerns about the deadly outbreak. But the market quickly recovered to new all-time highs just five months later after it became clear the Covid-19 outbreak wasn’t as catastrophic or deadly as initially feared. Stock prices were also supported by more than $5.2 trillion in U.S. government stimulus.
The Bear Market of 2022: Post-Pandemic Supply Chain Crisis
- Bear Market Duration: 10 months
- Maximum S&P 500 Decline: 25%
- Time to New Bull Market: 8 months
Unprecedented Covid-19 stimulus measures, global pandemic supply chain disruptions and Russia’s invasion of Ukraine sent U.S. inflation to its highest level in decades in 2022. The Fed was forced to aggressively raise interest rates, which triggered a sell-off in growth stocks and tech stocks.
