The odds are beginning to favor the bulls

Some interesting statistics from The Investment Scientist.

Since 1960, there have been ten bear markets. Following a decline of 20%, the worst bear market took one-and-a-half years to reach bottom. Four reached bottom within a month. The remaining five hit bottom between one and ten months. On average, it took 4 months to reach bottom.

From the day the S&P 500 entered a bear market, on average it returned 14% in one year and 31% in three years.

Among the ten one-year returns, two were negative, yet three were over 30%. As for the three-year returns, only one was negative but three were over 50%!

Bottom line? It pays to start looking for a bottom. And do not give up. Our indicators will help us avoiding major setbacks. Why? Because the odds are beginning to favor those investors who go long.

More, much more when you subscribe to The Peter Dag Portfolio on https://www.peterdag.com/.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977