Secular Bears

Since 1802 the stock market has been in either a Secular (long term) Bull or a Secular Bear phase.

For all past secular bear markets blue chip shares steadily declined for 8 to 20 years with a minimum peak to trough decline of 45%.

A secular market is a market-driven by a macro trend that can remain in place for many years, resulting in the stock market going up or down for a long period of time.  In a secular bull market, low-interest rates and strong corporate earnings push stocks prices higher.

In a secular bear market slowing economic growth, declining corporate earnings and rising interest rates cause selling pressure which pushes stocks lower for an extended period.  Cyclical bull or bear trends that have peak-to-troughs that are shorter in duration occur during secular bull and bear markets.