Q3's investment strategies are designed to react to changing market environments. We seek to participate in rising markets and reduce risk during unfavorable market conditions. Our experience has taught us that active investment management is increasingly important for delivering a real investment advantage.
Few Investors Can Afford a Major Portfolio Loss
At Q3, we believe that avoiding losses is just as important as achieving returns. Many investors understand the concept of compounding growth but few understand the impact significant losses can have on a portfolio.
Bear Market Facts
- A “Bear Market” is defined as a loss of 20% or more in stock prices for a broad market index like the Dow Jones Industrial Average or S&P 500.
- Between 1900 and 2020 there have been 14 bear markets in the Dow Jones Industrial Average.
- A new bear market occurs approximately once every 8.6 years and typically takes 76.3 months to reach the previous high.
- Historically the average bear market has seen stock prices fall an average of 42.0%.
- From the start of a "Bear Market," it takes an average of 2290 days for the market to recover back to the previous market high.
Returns to Recover from a Loss
A 10% Loss Requires 11%
A 20% Loss Requires 25%
A 30% Loss Requires 43%
A 40% Loss Requires 67%
A 50% Loss Requires 100%
Memorable Market Declines
- 1929 – 1932 -89% (Dow Jones Industrial Avg.)
- 1973 – 1974 -48% (S&P 500)
- 1980 – 1982 -27% (S&P 500)
- 2000 – 2002 -49% (S&P 500)
- 2000 – 2002 -78% (NASDAQ)
- 2007 – 2009 -57% (S&P 500)