Quote:
Originally Posted by PornHero
I do think though that this time is different. This isnt just a fear of a slowing economy or a terrorist attack. This exposes a fundamental instability/flaw in the system. Its a system that can do longer be trusted.  |
That's what everyone says every time we have a bear market. This is a typical bear market. And btw, "unprecedented" events occur in every bear market.
Currently, all the major indices are down 30% from their highs. The average bear market declines 20 - 30% peak to trough. Historically, the worse bear markets decline 50% from peak to trough. Lets say this particular bear market is going to be a really bad one. That means at most, the major indices will decline about 20% further from here. Also, your average bear market lasts approximately 600 days. Were about 300 days into our bear market.
All of the permanent damage will be done in the financials and housing sector. With a few exceptions, just about every other sector will recover just fine once wall street determines the economy is no longer in recession or heading deeper into recession.