We are in a Secular Bear market. I am not the only one to think this. See recent article by Vitaliy Katsenelson, the CEO of Investment Management Associates in Denver.
We have been there since 2000. I expect to make money in a Secular Bear market in dividends. I expect to make money in dividends until we hit the next Secular Bull market. In Secular Bear markets, the markets go, essentially nowhere. Yes, they go up and down and we have cyclical Bull and Bear markets with a secular market.
However, Secular Bear markets really go nowhere and I am certainly not expecting this one to be any different that the last one or any other Secular Bear market. The last Secular Bear was from 1966 to 1982. You can make capital gains in a Secular Bear. You can capture some rising stocks in a cyclical bull market. But capital gains will only occur in short term investments. I do this sometimes and it can be fun.
Secular Bear markets are also called sideway markets. The reason for this is that the entry point and exit point of such markets tend to be around the same place.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.