Hugh Lambert No Comments

The last 11 months have been difficult for stock market investors and pension investors also investing in the stock markets.

That’s because a number of markets around the world moved into Bear Market territory which is a drop of 20% from the highest valuation.

Now focusing on the S&P 500 which is the US market and probably the most influential in the world – The S&P moved into bear market territory last year.

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I posted an article from Forbes it went into a bit of detail about Bear Markets since 1945.

What we can expect is that over half of the Bear Markets peaked in terms of they hit their lowest valuation 2 months after going into Bear Market territory.

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So, 2 months after dropping by 20% they hit their lowest valuation. Now, it remains to be seen as to whether that’s going to be the case.

Unfortunately, Bear Markets that coincide with recessions tend to last quite a bit longer so it’s about 449 days.

Typically markets respond quite quickly and recover quite quickly.

In a lot of the cases of Bear Markets, the 6 and 12-month forward returns are quite strong.

Now in all Bear Markets, the markets have recovered sometimes it does take a little bit longer such as the eventuality of a recession which I think we will see.

A lot of analysts are forecasting for the end of the year that inflation will have subsided from an increase in interest rates.

That will then lead to interest rates decreasing and that should be a catalyst for the global economy and stock markets to grow.

While we’re working our way through it we probably have a little bit to go yet but the markets will recover.

Although it has been a tough time for investors and for pension investors, I think over the long term I think the markets will still show strong returns.

If you found this article helpful and would like to learn more about how to make the most of your finances, feel free to connect and start a conversation or contact me directly at +353 (87) 778 5325☎️

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