Secular Bear Market

A secular bear market refers to a long run cycle in the stock market in which share prices are depressed for a considerable period of time. The term “secular” is in regards to time frame, which, as it pertains to either a bear or bull market, can last for years.

The last secular bear market ran for 12 years after the technology bubble burst in 2000. Share prices, especially those of many large-cap technology companies, did not recover until the beginning of 2013. A secular bear market is often started after some major catalyst or shock to capital markets. This can include a significant change in monetary and/or fiscal policy, a major geopolitical event, or a shock to the financial system. Or, in the most recent case of such a market, share prices appreciating so much that a euphoric bubble is created. When this bubble finally bursts, the recovery period can take many years in order for share prices to stabilize.


The bear market is doing an excellent job with investors’ attitude towards the stock market. We can see it in the market’s performance... So far this year, the S&P 500 has gained 4.6%—its best January start in 15 years! Market…

If you’re worried about American stocks, there could be a great buying opportunity north of the border. In 2011, Canadian stocks trailed U.S. equities by the most in three years. The European debt crisis coupled with the slowdown in China…

Back in 1473, more than 500 years ago, a bank was born in Bologna, Italy. Through the centuries, the bank grew and grew its base. It would eventually absorb the nine largest banks in Italy and “combine” its assets with…

In a secular bear market, which is where I firmly believe we are today, there are three phases: A phase I bear market (often referred to as the first down-leg) brings stock prices crashing down. From its high of 14,164…

How do I feel this morning? Vindicated. I’ve been writing on these pages for months that the stock market has been in a bear market rally that started in March 2009 and that stock prices would move higher before Phase…

— "Profit Confidential" Column, by Michael Lombardi, CFP, MBA Yesterday, the price of gold bullion for April delivery fell $49.00. I'm getting the calls and e-mails from friends worried about their gold stocks. And, on the other hand, I see…

— by Michael Lombardi, CFP Sure, banking stocks and retail stocks have been hit hard in this downturn. But it was the home builder stocks that started dow first in 2005. From a peak of 1,100 in mid-2005, the Dow…