Comparing Current Bear Market With the Bear Market of 1960s and 1970s
The reason for the current bear market is the failure of US banking system and it is the cost of this collapse that is flowing all over the world
. Plus there have been sharp increase in the oil prices and inflation and these two factors are impacting the world economy as well.
Many people would have seen bear markets before but the impact of those bear market was almost nothing if we compare it with the changes made by today's recession. In different times bear market have been observed in 1960s and 1970s. This case is very much similar as the 1970s with slow growth and inflation in the country.
However, there are slight differences as well as at that time there were no mobile phones, no internet, plus the number of investors was less. Whereas today, majority of the people have directly or indirectly have some kind of link with the share market and therefore everyone today feels poorer. Today the condition in the property market and share market is really worst in the last 30 years in fact it is worst since 1930s.
However, the economy will recover and country like Australia will be one of the main countries that would be benefited because the country's national accounts are in good shape in addition to this, budget of Federal Government is in surplus.
You must remember that there is no need to rush and return back to the market, keep in mind that bears move slowly. So, as an investor you would have time on your side.
Comparing Current Bear Market With the Bear Market of 1960s and 1970s