BAD BEAR

Dating back to the early 1960s and the last ten bull markets, bulls are propelled 40% by rising P/E multiples and 60% from earnings growth. Bear markets, 80% due to declining multiples and 20% from declining earnings, animal spirits are key. The average bull market sees equities almost triple; bear markets see equities fall nearly 40%. Here’s the math: on the upswing $100 becomes $300 and then down to $180.