SlideShare a Scribd company logo
1 of 17
Coping with Bear Markets Don Lansing, Chief Investment Officer
The S&P 500 Delivers a LOST Decade ,[object Object],[object Object],[object Object],[object Object]
Secular Market Cycles ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Secular Markets in More Detail
What This Means for Investors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Do Traditional Strategies Help? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Results of Asset Allocation ,[object Object],[object Object],[object Object],[object Object],Growth of $100,000 Investment $60,000 $80,000 $100,000 $120,000 $140,000 Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 S&P 500 Stocks and Bonds Rebalanced Every 6 Months
Why Preserving Capital Is the Key to Success ,[object Object]
Managing Risk ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Beware the (Cyclical) Bear ,[object Object],[object Object],[object Object],[object Object],[object Object]
Follow the Trend:  Invest in the Bull; Avoid the Bear
Or Be Aggressive and SHORT the BEAR
Secular Bear Markets Mean Big Loss Years ,[object Object],Dow Jones Industrial Average DISPERSION OF ANNUAL STOCK MARKET CHANGES Percent of Years During Secular Cycles (8+ Cycles: 1901-2008) Copyright 2003-2009, Crestmont Research (www.CrestmontResearch.com) 28% 67% 47% >+ 10% 33% 30% 31% -10% to +10% 39% 4% 21% <-10% 54 Yrs BEAR 54 Yrs BULL 108 Yrs AVG RANGE 19% 50% 34% >+ 16% 50% 50% 50% -16% to +16% 31% 0% 16% <-16% 54 Yrs BEAR 54 Yrs BULL 108 Yrs AVG RANGE
In Conclusion ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
M ARKET T REND   A DVISORS ,[object Object],[object Object],[object Object],[object Object],[object Object]
M ARKET T REND   A DVISORS ,[object Object],[object Object],[object Object],[object Object]
M ARKET T REND   A DVISORS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

More Related Content

What's hot

Quarterly report for our investors - First Quarter 2019
Quarterly report for our investors - First Quarter 2019Quarterly report for our investors - First Quarter 2019
Quarterly report for our investors - First Quarter 2019
BESTINVER
ย 
Stock Trak Presentation
Stock Trak PresentationStock Trak Presentation
Stock Trak Presentation
Thomas Goodheart
ย 
Investing in philippine stock market for beginners - a quick start for Filip...
Investing in philippine stock market for beginners -  a quick start for Filip...Investing in philippine stock market for beginners -  a quick start for Filip...
Investing in philippine stock market for beginners - a quick start for Filip...
Omeng Tawid
ย 
Valuation of Costco
Valuation of CostcoValuation of Costco
Valuation of Costco
Nicholas Nguyen
ย 
Introduction to Investing - Infinity
Introduction to Investing - InfinityIntroduction to Investing - Infinity
Introduction to Investing - Infinity
Duprรฉ Quentin
ย 
Introduction to Investing
Introduction to InvestingIntroduction to Investing
Introduction to Investing
Adam Humphries
ย 
Introduction to Investing 07-05-2015
Introduction to Investing 07-05-2015Introduction to Investing 07-05-2015
Introduction to Investing 07-05-2015
Ruben Gonzales
ย 

What's hot (14)

Strategic Asset Allocation 2020
Strategic Asset Allocation 2020Strategic Asset Allocation 2020
Strategic Asset Allocation 2020
ย 
Market perspective march 2015
Market perspective   march 2015Market perspective   march 2015
Market perspective march 2015
ย 
Quarterly report for our investors - First Quarter 2019
Quarterly report for our investors - First Quarter 2019Quarterly report for our investors - First Quarter 2019
Quarterly report for our investors - First Quarter 2019
ย 
Stock Trak Presentation
Stock Trak PresentationStock Trak Presentation
Stock Trak Presentation
ย 
Ang Paghahanda Para Sa Kaunlaran ng Pamilyang OFW
Ang Paghahanda Para Sa Kaunlaran ng Pamilyang OFWAng Paghahanda Para Sa Kaunlaran ng Pamilyang OFW
Ang Paghahanda Para Sa Kaunlaran ng Pamilyang OFW
ย 
Investing in philippine stock market for beginners - a quick start for Filip...
Investing in philippine stock market for beginners -  a quick start for Filip...Investing in philippine stock market for beginners -  a quick start for Filip...
Investing in philippine stock market for beginners - a quick start for Filip...
ย 
Valuation of Costco
Valuation of CostcoValuation of Costco
Valuation of Costco
ย 
10 golden rules of investing
10 golden rules of investing10 golden rules of investing
10 golden rules of investing
ย 
2017 08-17 gmo
2017 08-17 gmo2017 08-17 gmo
2017 08-17 gmo
ย 
(286) why so much cash 2
(286)  why so much cash 2(286)  why so much cash 2
(286) why so much cash 2
ย 
Introduction to Investing - Infinity
Introduction to Investing - InfinityIntroduction to Investing - Infinity
Introduction to Investing - Infinity
ย 
Introduction to Investing
Introduction to InvestingIntroduction to Investing
Introduction to Investing
ย 
Introduction to Investing 07-05-2015
Introduction to Investing 07-05-2015Introduction to Investing 07-05-2015
Introduction to Investing 07-05-2015
ย 
[EN] Column / MA Fears and fragility / Januari 2016
[EN] Column / MA Fears and fragility / Januari 2016 [EN] Column / MA Fears and fragility / Januari 2016
[EN] Column / MA Fears and fragility / Januari 2016
ย 

Similar to MarketTrend Advisors - Coping With Bear Markets 023009

Summer Intern Project - Grace Chmiel
Summer Intern Project - Grace ChmielSummer Intern Project - Grace Chmiel
Summer Intern Project - Grace Chmiel
Grace Chmiel
ย 
Ntu 2010 Presentation (Tnfm)
Ntu 2010 Presentation (Tnfm)Ntu 2010 Presentation (Tnfm)
Ntu 2010 Presentation (Tnfm)
tstsv
ย 
Financial empowernment for educators
Financial empowernment for educatorsFinancial empowernment for educators
Financial empowernment for educators
NAFCareerAcads
ย 
Investments For Life
Investments For LifeInvestments For Life
Investments For Life
MBritos
ย 
Investor Education
Investor EducationInvestor Education
Investor Education
Rajesh Rampal
ย 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
hyrejam
ย 

Similar to MarketTrend Advisors - Coping With Bear Markets 023009 (20)

Target Retirement Income Planning
Target Retirement Income PlanningTarget Retirement Income Planning
Target Retirement Income Planning
ย 
Wealth Management - Week 2
Wealth Management - Week 2Wealth Management - Week 2
Wealth Management - Week 2
ย 
Portfolio perspectives-greatest lesson-part2-0813
Portfolio perspectives-greatest lesson-part2-0813Portfolio perspectives-greatest lesson-part2-0813
Portfolio perspectives-greatest lesson-part2-0813
ย 
Summer Intern Project - Grace Chmiel
Summer Intern Project - Grace ChmielSummer Intern Project - Grace Chmiel
Summer Intern Project - Grace Chmiel
ย 
Tamohara investment newsletter April 2015
Tamohara investment newsletter  April 2015Tamohara investment newsletter  April 2015
Tamohara investment newsletter April 2015
ย 
Class Investing Basics
Class Investing BasicsClass Investing Basics
Class Investing Basics
ย 
Ntu 2010 Presentation (Tnfm)
Ntu 2010 Presentation (Tnfm)Ntu 2010 Presentation (Tnfm)
Ntu 2010 Presentation (Tnfm)
ย 
Why SIP in Mutual Funds - FinVise India
Why SIP in Mutual Funds - FinVise IndiaWhy SIP in Mutual Funds - FinVise India
Why SIP in Mutual Funds - FinVise India
ย 
Investment Presentation August 2010
Investment Presentation August 2010Investment Presentation August 2010
Investment Presentation August 2010
ย 
Planning Strategies Q410
Planning Strategies Q410Planning Strategies Q410
Planning Strategies Q410
ย 
Aboslute Capital Univ. Presentation
Aboslute Capital Univ. PresentationAboslute Capital Univ. Presentation
Aboslute Capital Univ. Presentation
ย 
Financial empowernment for educators
Financial empowernment for educatorsFinancial empowernment for educators
Financial empowernment for educators
ย 
Tamohara investment newsletter September 2015
Tamohara investment newsletter  September 2015Tamohara investment newsletter  September 2015
Tamohara investment newsletter September 2015
ย 
Investments For Life
Investments For LifeInvestments For Life
Investments For Life
ย 
Investor Education
Investor EducationInvestor Education
Investor Education
ย 
BSE
BSEBSE
BSE
ย 
Investment Insights, October 2017
Investment Insights, October 2017Investment Insights, October 2017
Investment Insights, October 2017
ย 
There is always a reason to sell
There is always a reason to sellThere is always a reason to sell
There is always a reason to sell
ย 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
ย 
Cornerstone Wealth Management - Bear Market Survival Guide
Cornerstone Wealth Management - Bear Market Survival GuideCornerstone Wealth Management - Bear Market Survival Guide
Cornerstone Wealth Management - Bear Market Survival Guide
ย 

Recently uploaded

FOREX FUNDAMENTALS: A BEGINNER'S GUIDE.pdf
FOREX FUNDAMENTALS: A BEGINNER'S GUIDE.pdfFOREX FUNDAMENTALS: A BEGINNER'S GUIDE.pdf
FOREX FUNDAMENTALS: A BEGINNER'S GUIDE.pdf
Cocity Enterprises
ย 
abortion pills in Jeddah Saudi Arabia (+919707899604)cytotec pills in Riyadh
abortion pills in Jeddah Saudi Arabia (+919707899604)cytotec pills in Riyadhabortion pills in Jeddah Saudi Arabia (+919707899604)cytotec pills in Riyadh
abortion pills in Jeddah Saudi Arabia (+919707899604)cytotec pills in Riyadh
samsungultra782445
ย 
Abortion pills in Saudi Arabia (+919707899604)cytotec pills in dammam
Abortion pills in Saudi Arabia (+919707899604)cytotec pills in dammamAbortion pills in Saudi Arabia (+919707899604)cytotec pills in dammam
Abortion pills in Saudi Arabia (+919707899604)cytotec pills in dammam
samsungultra782445
ย 
Economics Presentation-2.pdf xxjshshsjsjsjwjw
Economics Presentation-2.pdf xxjshshsjsjsjwjwEconomics Presentation-2.pdf xxjshshsjsjsjwjw
Economics Presentation-2.pdf xxjshshsjsjsjwjw
mordockmatt25
ย 
MASTERING FOREX: STRATEGIES FOR SUCCESS.pdf
MASTERING FOREX: STRATEGIES FOR SUCCESS.pdfMASTERING FOREX: STRATEGIES FOR SUCCESS.pdf
MASTERING FOREX: STRATEGIES FOR SUCCESS.pdf
Cocity Enterprises
ย 

Recently uploaded (20)

Black magic specialist in Canada (Kala ilam specialist in UK) Bangali Amil ba...
Black magic specialist in Canada (Kala ilam specialist in UK) Bangali Amil ba...Black magic specialist in Canada (Kala ilam specialist in UK) Bangali Amil ba...
Black magic specialist in Canada (Kala ilam specialist in UK) Bangali Amil ba...
ย 
Call Girls Howrah ( 8250092165 ) Cheap rates call girls | Get low budget
Call Girls Howrah ( 8250092165 ) Cheap rates call girls | Get low budgetCall Girls Howrah ( 8250092165 ) Cheap rates call girls | Get low budget
Call Girls Howrah ( 8250092165 ) Cheap rates call girls | Get low budget
ย 
FOREX FUNDAMENTALS: A BEGINNER'S GUIDE.pdf
FOREX FUNDAMENTALS: A BEGINNER'S GUIDE.pdfFOREX FUNDAMENTALS: A BEGINNER'S GUIDE.pdf
FOREX FUNDAMENTALS: A BEGINNER'S GUIDE.pdf
ย 
Famous No1 Amil Baba Love marriage Astrologer Specialist Expert In Pakistan a...
Famous No1 Amil Baba Love marriage Astrologer Specialist Expert In Pakistan a...Famous No1 Amil Baba Love marriage Astrologer Specialist Expert In Pakistan a...
Famous No1 Amil Baba Love marriage Astrologer Specialist Expert In Pakistan a...
ย 
Strategic Resources May 2024 Corporate Presentation
Strategic Resources May 2024 Corporate PresentationStrategic Resources May 2024 Corporate Presentation
Strategic Resources May 2024 Corporate Presentation
ย 
NO1 Verified Online Love Vashikaran Specialist Kala Jadu Expert Specialist In...
NO1 Verified Online Love Vashikaran Specialist Kala Jadu Expert Specialist In...NO1 Verified Online Love Vashikaran Specialist Kala Jadu Expert Specialist In...
NO1 Verified Online Love Vashikaran Specialist Kala Jadu Expert Specialist In...
ย 
W.D. Gann Theory Complete Information.pdf
W.D. Gann Theory Complete Information.pdfW.D. Gann Theory Complete Information.pdf
W.D. Gann Theory Complete Information.pdf
ย 
falcon-invoice-discounting-unlocking-prime-investment-opportunities
falcon-invoice-discounting-unlocking-prime-investment-opportunitiesfalcon-invoice-discounting-unlocking-prime-investment-opportunities
falcon-invoice-discounting-unlocking-prime-investment-opportunities
ย 
abortion pills in Jeddah Saudi Arabia (+919707899604)cytotec pills in Riyadh
abortion pills in Jeddah Saudi Arabia (+919707899604)cytotec pills in Riyadhabortion pills in Jeddah Saudi Arabia (+919707899604)cytotec pills in Riyadh
abortion pills in Jeddah Saudi Arabia (+919707899604)cytotec pills in Riyadh
ย 
Responsible Finance Principles and Implication
Responsible Finance Principles and ImplicationResponsible Finance Principles and Implication
Responsible Finance Principles and Implication
ย 
Stock Market Brief Deck (Under Pressure).pdf
Stock Market Brief Deck (Under Pressure).pdfStock Market Brief Deck (Under Pressure).pdf
Stock Market Brief Deck (Under Pressure).pdf
ย 
FE Credit and SMBC Acquisition Case Studies
FE Credit and SMBC Acquisition Case StudiesFE Credit and SMBC Acquisition Case Studies
FE Credit and SMBC Acquisition Case Studies
ย 
Abortion pills in Saudi Arabia (+919707899604)cytotec pills in dammam
Abortion pills in Saudi Arabia (+919707899604)cytotec pills in dammamAbortion pills in Saudi Arabia (+919707899604)cytotec pills in dammam
Abortion pills in Saudi Arabia (+919707899604)cytotec pills in dammam
ย 
Test bank for advanced assessment interpreting findings and formulating diffe...
Test bank for advanced assessment interpreting findings and formulating diffe...Test bank for advanced assessment interpreting findings and formulating diffe...
Test bank for advanced assessment interpreting findings and formulating diffe...
ย 
20240419-SMC-submission-Annual-Superannuation-Performance-Test-โ€“-design-optio...
20240419-SMC-submission-Annual-Superannuation-Performance-Test-โ€“-design-optio...20240419-SMC-submission-Annual-Superannuation-Performance-Test-โ€“-design-optio...
20240419-SMC-submission-Annual-Superannuation-Performance-Test-โ€“-design-optio...
ย 
Avoidable Errors in Payroll Compliance for Payroll Services Providers - Globu...
Avoidable Errors in Payroll Compliance for Payroll Services Providers - Globu...Avoidable Errors in Payroll Compliance for Payroll Services Providers - Globu...
Avoidable Errors in Payroll Compliance for Payroll Services Providers - Globu...
ย 
Economics Presentation-2.pdf xxjshshsjsjsjwjw
Economics Presentation-2.pdf xxjshshsjsjsjwjwEconomics Presentation-2.pdf xxjshshsjsjsjwjw
Economics Presentation-2.pdf xxjshshsjsjsjwjw
ย 
MASTERING FOREX: STRATEGIES FOR SUCCESS.pdf
MASTERING FOREX: STRATEGIES FOR SUCCESS.pdfMASTERING FOREX: STRATEGIES FOR SUCCESS.pdf
MASTERING FOREX: STRATEGIES FOR SUCCESS.pdf
ย 
Significant AI Trends for the Financial Industry in 2024 and How to Utilize Them
Significant AI Trends for the Financial Industry in 2024 and How to Utilize ThemSignificant AI Trends for the Financial Industry in 2024 and How to Utilize Them
Significant AI Trends for the Financial Industry in 2024 and How to Utilize Them
ย 
Lion One Corporate Presentation May 2024
Lion One Corporate Presentation May 2024Lion One Corporate Presentation May 2024
Lion One Corporate Presentation May 2024
ย 

MarketTrend Advisors - Coping With Bear Markets 023009

Editor's Notes

  1. Letโ€™s begin by discussing the challenges individual investors face. Most of us have a pretty strong emotional component in our makeup. Unfortunately, these emotions are our greatest enemy when interacting with the stock market. I have a client who watches his portfolio every day โ€“ thatโ€™s not unusual, of course. And almost every day he has some comment to send me about it. When the market has a big up day, he wants to know why we donโ€™t have more stocks and whether we should add some. Then, the market drops and he wants to know why we have so MANY stocks and whether we should sell some. This type of emotional reaction to the market wears the poor guy out (and sometimes me as well!). Indeed, even his doctor has told him to stop watching the market. But he seems unable to. Left to his own decisions, this fellow, who is a smart guy perfectly capable of investing well, would be jumping in and out of the market all the time. The results would be, and have been at times, disastrous for his portfolio. More unfortunately, many studies have found that my friend here is not the exception but the RULE when it comes to individual investors. Individuals react emotionally to the market and make their decisions accordingly. They overtrade, buy when they should sell, sell when they should buy, and so on. As a result, many of them give up in frustration as they fail to make any money in the stock market. This morning, I will present an investment strategy that tries to help us avoid these common problems. Itโ€™s a simple strategy that requires just a couple of rules and keeps you from suffering from years like 2008 will benefiting from the good years.