Bear to Bull to Bear Market: 2000s
Cue the first decade of the new millennium, 2000–2009, and boy was this a tough one. Y2K, 9/11, Enron, the Iraq War, and the housing crisis led to a financial panic. As a result, we had two bear markets or two very damaging bears. The first bear was 25 months of torture and a 44% decline. We then spent the next five years recovering those losses. We did get a bull market then that lasted 61 months – 109% or 16% annualized. The next bear market left scars on many people reading this now. The bear of 2008–2009 was terrible. 16 months – 50%. Remember when every morning a new bank was going bust? Yuck!
We are still riding the bull market since we all picked ourselves up and dusted the dirt off our shoulders from the housing and banking crisis. As of writing this section, we stand at 127 months and a 343% return. When will the next recession be? When will the bull end? Will there be a recession but no bear? Stay tuned! I’ve got the answers.