How to model a typical bear market
Posted: Fri Dec 28, 2018 2:28 pm
I love this program. Thanks so much.
Luck of the draw - I retire next week and it looks like we are heading into a bear market. I recently read: "Since World War II, bear markets on average have fallen 30.4 percent and have lasted 13 months, according to analysis by Goldman Sachs and CNBC. When that milestone has been hit, it took stocks an average of 21.9 months to recover."
I've entered -30.4% for the Portfolio Return to start & stop in my retirement year at 0% Std Dev. But is there a way to account for the fact that the market takes 22 months to recover?
Luck of the draw - I retire next week and it looks like we are heading into a bear market. I recently read: "Since World War II, bear markets on average have fallen 30.4 percent and have lasted 13 months, according to analysis by Goldman Sachs and CNBC. When that milestone has been hit, it took stocks an average of 21.9 months to recover."
I've entered -30.4% for the Portfolio Return to start & stop in my retirement year at 0% Std Dev. But is there a way to account for the fact that the market takes 22 months to recover?