The Equity Market Has Been in a Bull Market 84% of the Time Since 1980

by Jacob Wolinsky, ValueWalk

Logos LP commentary titled, “Get Out Or Go All In,” discussing long-term positive returns, higher returns do not come without volatility, occasionally crash, what stocks perform better.

Stocks fell for a fifth straight day on Friday after the U.S. government released employment data that missed expectations by a large margin, adding to mounting concerns that the global economy may be slowing down.

The indexes posted their biggest weekly declines of the year. The major indexes all dropped more than 2 percent this week. The Nasdaq snapped a 10-week winning streak, while the Dow notched its second weekly decline of the year.

To put things in perspective, while the headline was that the S&P suffered its worst week in 2019, the index gave back 2.5% of the 19+% gain achieved during the recent rally.

The U.S. economy added just 20,000 jobs in last month, marking the weakest month of jobs creation since September 2017. Economists polled by Dow Jones expected a gain of 180,000.

The data come amid growing concerns about the global economy possibly slowing down. Data out of China showed its exports slumped 20.7 percent from a year earlier, far below analyst expectations and wiping out a surprise jump in January.
The weak data all come less than 24 hours after the European Central Bank slashed its growth forecasts for the euro zone and announced a new round of policy stimulus.

Our Take

The bears came out again this week screaming the usual platitudes they’ve been pushing since 2015: “The bull market is old and tired, the economic recovery has run its course, we are headed for a recession and the market’s best days are behind us.”

This may or may not be true, but it is important to remember that investors as

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