The Bull & Bear Chart illustrates the history of Bull and Bear Markets in the Dow Jones Industrial Average back to 1900. You'll notice that while the market tends to rise over the period, 72 percent of the time it is either falling or recovering to break even. Often this chart is presented showing the Bull Markets starting at the bottom of a fall, but this chart doesn't reflect a Bull Market until the index has returned to the previous high.
Why it Matters:
Investors focus on growth in their portfolios. If a client account falls from $100,000 to $80,000 they don't count it as growth until they recover above the $100,000. Mutual fund companies often emphasize the run from a bottom to a top while minimizing the drop and recovery. At Q3 we believe that effective management can reduce the drop so that the recovery comes sooner.