Bear market conditions of the past three years have been the second worst in recent history, accordi...
Bear market conditions of the past three years have been the second worst in recent history, according to research from Schroder Salomon Smith Barney (SSSB).
Share prices collapsed more than 50% from their peak to their 12 March trough but that decline is easily surpassed by the bear market of May 1972 to December 1974 when shares plunged 72.8% in value.
In the 40 years covered by its research, there have been seven other bear markets, including the 24.9% decline suffered between July and October 1998 and the crash of October 1987. In that instance, shares had started their decline much earlier ' in July 1987 ' and fell 36.6% in total.
But this bear market can still claim to be the worst in history, not solely on the decline suffered by shares but through a combination of its depth and length. Even the Great Depression of 1929-1931 itself pales into insignificance compared with the current bear market.
Share prices have already fallen more than the 45% decline suffered during the depression and the declines have already lasted longer than its three years.
For more on previous bear phases, see the June issue of our sister monthly magazine Investment Strategies.
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