Understanding Secular Bear Markets: Concerns and Strategies for Financial Planners

Solow, Kenneth R.; Kitces, Michael E.
March 2006
Journal of Financial Planning;Mar2006, Vol. 19 Issue 3, p60
Academic Journal
The article provides advice to financial planners concerning how to advise clients in bear markets. The authors contend that the period from 2000 to 2006 is a "secular" bear market. Until the market reaches its prior S&P 500 high of 1527, the market is not in a true bull market, according to the authors. The authors call the post-2002 period of increases in equity values a "cyclical" bull market. The article presents charts of stock market returns during historical bear market periods. The article advises that retirement investors and retirement planners adopt an active investment strategy rather than a passive one.


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