Looking back at data going back to the 1800\u2019s, here\u2019s what\nwe know about the relative magnitude and duration of each category of bear\nmarket:<\/p>\n\n\n\n ______________________________________________________________________________<\/p>\n\n\n\n How to Survive this Bear Market? <\/a><\/strong><\/p>\n\n\n\n At the end\nof the day, I think the key for investors is to try and focus on the hard data.\nBear markets do not last forever, in fact, they are generally much shorter than\nbull markets, and event-driven bear markets, like this one, tend to recover\nfaster as you can see from the data above.<\/p>\n\n\n\n I recommend\nthat investors remain calm, focus on the long-term and not let your emotions\ntake control of your investments. To help you do this, I am offering all\nreaders our just-released April Market Strategy report. This report contains\nsome of our key forecasts & factors to consider such as:<\/p>\n\n\n\n And much more\u2026<\/em>If you have $500,000 or more to invest and want to learn more about these forecasts, click on the link below to get your free report today!\u00a0 _____________________________________________________________________________<\/strong><\/p>\n\n\n\n It makes sense why structural bear markets tend to be the\nmost severe \u2013 they result from systemic issues in the financial system and\ncapital markets, which can take a lot of time and pain (in the form of\nbankruptcies, restructurings, etc.) to fix. Cyclical bear markets are next, and\ngenerally require the business cycle to run its course, for interest rates to\nfall, maybe some monetary and fiscal stimulus to stoke demand. Cyclical bear\nmarkets are bad, but have tended to resolve themselves with time and adequate\npolicy responses. <\/p>\n\n\n\n Last on the list are \u2018event-driven\u2019 bear markets, which\nthroughout history have tended to be shorter, less severe on the downside and take\nless time needed to recover than \u2018structural\u2019 or \u2018cyclical\u2019 bear markets. This\nmakes sense: in many cases, the global\/US economy is in decent or good shape\nbefore an exogenous event takes place, meaning that it does not take quite as\nlong for the economy to recover once the impact of the \u2018event\u2019 fades. <\/p>\n\n\n\n In the current environment, for example, millions of jobs\nwere lost very early in the crisis as businesses made fast and severe\nadjustments to cope with shutdowns and restrictions. But once these restrictions are removed,\nthe lost jobs could return fairly quickly \u2013 and arguably more quickly than if\nthis were a structural or cyclical recession, in my view. <\/p>\n\n\n\n To be fair, I think it\u2019s important to acknowledge that there\nhas not been an event-driven bear market in history that was triggered by a\nvirus\/disease outbreak. I think it\u2019s important to hold out the possibility that\nthis event-driven bear could morph into a structural bear if the crisis is not\ncontained by, say, summer. In the meantime, however, I think the sheer size and\nspeed of fiscal ($2 trillion legislation) and monetary (virtually infinite\nliquidity) stimulus should help keep this bear market in the event-driven\ncategory for a few months. <\/p>\n\n\n\n In China, new Covid-19 cases fell sharply by mid-March, with\nthe first day of no new cases reported on March 19 \u2013 about two and a half\nmonths into the outbreak. As I write this, more than 98% of China\u2019s major\nindustrial companies have resumed operations, with 90% of workers back on the\njob. Shopping malls in Wuhan, where Covid-19 first appeared, opened for\nbusiness this week after being shut completely for two months.3<\/sup> If,\nin the West, we manage to contain the crisis and the \u2018curves all flatten\u2019 by\nsummer, we could tiptoe back to normal economic activity perhaps by late\nsummer. Time will tell. <\/p>\n\n\n\n Bottom Line for\nInvestors<\/strong><\/p>\n\n\n\n There is no way to know when this bear market will bottom.\nBut what I can tell you, from a long reading of history, is that the bear market will likely come to end as\nthe news remains bad and even gets worse<\/em>. In other words, I think on day 1\nof the new bull market, we will still be reading about job losses, lost\nprofits, and bleak statistics about the pandemic. That\u2019s what makes it\nimpossible to predict. <\/p>\n\n\n\n Now that we\u2019re in the throes of the bear market, the most\nimportant outcome for investors, in my view, is to ensure that you\u2019re\npositioned from Day 1 to participate in the rebound when it occurs. If this is\nan event-driven bear market, which I believe it is, that rebound could arrive\nmuch sooner than many anticipate. <\/p>\n\n\n\n In the meantime, I recommend that investors remain calm, focus on the long term and not let emotions take control of their investments. To help you focus on the fundamentals instead of the fearsome headlines, I am offering all readers our\u00a0<\/a>Just-Released April 2020 Market Strategy Report.<\/a>\u00a0<\/strong> If you have $500,000 or more to invest and want to learn more about these forecasts, click on the link below to get your free report today!4<\/sup><\/p>\n","protected":false},"excerpt":{"rendered":" Event-driven bear markets tend to recover more quickly than structural or cyclical bear markets.<\/p>\n","protected":false},"author":3,"featured_media":7430,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[63,71,1],"tags":[],"class_list":["post-8579","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mitch-on-the-markets","category-private-client-group","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/8579","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=8579"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/8579\/revisions"}],"predecessor-version":[{"id":10620,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/8579\/revisions\/10620"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=8579"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=8579"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=8579"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/zacksim.com\/blog\/wp-content\/uploads\/2022\/02\/image-1-of-1.png\")
IT’S FREE. Download the Just-Released April 2020 Market Strategy Report<\/a>2<\/a><\/sup><\/strong><\/p>\n\n\n\n
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This Special Report is packed with newly revised predictions that can help you base your next investment move on hard data. For example, you’ll discover Zacks\u2019 view on:<\/p>\n\n\n\n