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How much longer will this bear market go on for?

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  • masonic
    masonic Posts: 27,363 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Type_45 said:
    Prism said:
    Prism said:
    Apodemus said:
    adindas said:

    It is now the bear market and stock market has been trending down slowly since November 2021.

    While this is true for the World as a whole, there will be many UK self-investors who are (perhaps naively) over-exposed to the UK market which has been pretty flat for five or so years, with the exception of the Covid dip period.  Where the UK market will go is anyone's guess, but while these investors have probably not made the same gains in the past five years, they've not experienced the same drops in the last five months.  Such investors need to be wary of viewing this as evidence of a less volatile portfolio, or a lower risk one.

    The FTSE100 has been in a bear market for almost quarter of a century. It has moved nowhere for the past 23 years. Some call it a Jurassic dinosaur market. It has gone beyond the bear.
    You don't seem to understand the FTSE 100 at all
    Sounds like some folks may not be up-to-date with the very latest, modern terms.

    In real terms, the FTSE100 has plunged a huge -30% between 1999 and 2022. It has moved nowhere, in nominal terms, for a quarter of a century. One of the worst-performing major stockmarkets in history. That is not a bear. It is a dinosaur. Some now call it the Jurassic market.
    The returns on the FTSE 100 have easily exceeded inflation between 1999 and 2022. The index itself is not relevant. In performance terms it kept up with MCSI World until 2015 when the Brexit vote was announced. 


    Keeping up with inflation over a 20 year period isn't much of a boast.  That's the minimum expectation of investing.

    It's delivered about twice inflation over that period overall, but inflation has been pretty low for most of it. It's a sad fact that back in the early 2000s the FTSE100 was pushed as an "international index" with 70% of earnings coming from overseas, and many UK investors saw themselves as being globally diversified by holding it. Some still have a large UK bias in their portfolios.
    It's become common to substitute the FTSE250 for FTSE100 to get better exposure to the domestic fortunes of the UK and higher returns, but I don't think UK investors will be rewarded much in the short term.

  • Type_45
    Type_45 Posts: 1,723 Forumite
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    The scramble for the exit is going to be epic.
  • Linton
    Linton Posts: 18,198 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    Type_45 said:
    The scramble for the exit is going to be epic.
    When? A deadline would be helpful so we can check your predictions.
  • masonic
    masonic Posts: 27,363 Forumite
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    The original prediction was during 2022. I am sure there will be no attempts to move the goalposts at this point.
  • Apodemus
    Apodemus Posts: 3,410 Forumite
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    Type_45 said:
    The scramble for the exit is going to be epic.
    "...be greedy when others are fearful..."?
  • renegade1
    renegade1 Posts: 68 Forumite
    Fifth Anniversary 10 Posts
    edited 6 August 2022 at 10:41AM
    Linton said:
    Type_45 said:
    The scramble for the exit is going to be epic.
    When? A deadline would be helpful so we can check your predictions.
    He's purposely being ambiguous so he won't get called out on it. Posts like these are just designed to invoke responses and stir up panic. It's textbook trolling.
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