AFR - Allco Finance Group

Hi Tropo and Sim,

I imagine that passive investors are able to make any market as:

Average Annual Bull Market Duration: 42 months
Average Annual Bear Market Duration: 14 months

Even with the annual returns being the same, as the duration for a bull market on average is longer you can make money (basically going long and holding...)

Cheers,

Dan

 

Hi Dan,

It may not be the best comparison, but after Great Depression of 1929 it took the US market 20 years to recover to the same level (index level)

 

Hi Tropo,

The graph I am talking about starts in 1970 (the last 37 or so years)...http://www.advance.com.au/resources/afm/downloads/advisers/Bull_and_Bear(5).pdf

Before that I don't know exactly, I think around that time the market shed 40% or so and with the great depression took a while to bounce back (exactly how many, I'm not sure, I'd have to check a graph).

Cheers,

Dan