A picture is worth a lot of money

If you appreciate the descriptive ability of pictures as much as I do then you’ll like this one, although you may not appreciate the effect it’s had on your net worth.  The chart below shows significant bear markets from 1929 to the present.  The horizontal axis measures the length of each, while the vertical represents the price decline.  Only one bear market has seen a worse decline than this one, although most have been longer in duration.

  The lines themselves merely connect zero with the bear market loss and duration.  The purple ray represents the average bear market.

A natural observation is that while the decline has been as bad as anything short of the Great Depression, perhaps we still have to do time, as the time we’ve spent declining has been shorter than average.  For a look into how that might be resolved, click here.

bear-markets-comparison-xlrg5

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