Are you prepared for a decline in stock prices?

One thing you should know is that forecasting is extremely difficult to predict, if not almost impossible. There are no certitudes in the market given that sometimes it is ruled by psychological behaviors and emotions. What we could rely on is history, some of the largest and shortest expansions or bull markets.

A bull market is a period of general rise in prices. Bear markets follow bull markets and vice-versa; defined as periods of decline in prices. A bear market is usually defined as a 20% decline or more from a previous peak.

Since the recession of 2009, we have been in a bull market that has lasted six years and is up approximately 200%. Is this a long period or short period?

Bull markets are driven by corporate profits and sentiment. If the general public believes we are in the brink of a recession, there is a sellout, driving prices down and paving the road for a bear market.

Other factors that could drive stock prices down are natural events and federal policies.

Let’s make this clear, the current bull market we are experiencing will end and you should be prepared for it with the right tools and mindset.

At Sonoman Investments LLC, we are prepared to face major economic changes and act proactively to protect the money of our investors.

So, contact us and ask us what you can do to protect yourself.

http://www.sonomaninvestments.com

Below, I leave you with the S&P Historical Bull Market’s advances (below figures are an approximation and not exact):

  • 1932-1937: 325-330%
  • 1942-1946: 160-170%
  • 1949-1956: 255-260%
  • 1957-1961: 90-100%
  • 1962-1966: 80-90%
  • 1966-1968: 50%
  • 1970-1973: 75-85%
  • 1974-1980: 130-135%
  • 1982-1987: 215-220%
  • 1987-1990: 65-75%
  • 1990-2000: 400% +
  • 2002-2007: 100-105%
  • 2009-Present: 180-190%
Written by:
Alex Lopez
Posted on:
July 28, 2017