While claims of creating material wealth are true in equity markets, emotional impact on full time dedicated investors is not well studied and reported. It pays to be a bull as markets are mostly up rather than down over long term.
To be informed is to be empowered.
You should know, if you are not already aware that equity indices may or may not move for 11 years (eg: Sensex) or 16 years( eg: Dow Jones) or even 25 years (eg: Nikkei) except for 1% of stocks (that we may or may not own). Person who has not read history is like a child, doomed to repeat mistakes (of throwing in the towel, or himself from the window :-))
Some of the charts below will provide perspective on bear markets.
I just tweeted that a typical, low intensity bear market (3 on Richter scale) typically lasts 6-18 months. Not sure which part was horrendous for my friend Padmashankar, comparison with Hitler’s gas chamber or duration of bear markets. I assumed duration, if 18 months is long and painful, then one is likely to end up in lunatic asylum if one is trapped in a 10 year bear market, hence this post.
Lets pay homage to the mother of all, Dow Jones in 1930s, several years long, down 86% from 375 to 50, the great bear market (read suicides)
Note the 18 Year consolidation (read pain) from 1906 – 1924 and 16 Year consolidation (read suffering) from 1966 – 1982