3 Beaten-Down Dow Stocks to Buy Before the Market Bounces Back
The Dow Jones Industrial Average officially entered bear market territory on Monday. That can be scary for investors. But smart investors understand the history of bear markets and that every bear market has had one thing in common. More importantly, they know how to get richer based on that knowledge.
According to Yardeni Research, there have been 22 bear markets since 1928 (measured by the S&P 500 index). Those bear markets have ranged from a 20.6% decline (barely meeting the 20% bear market threshold) to 83% in the depths of the Great Depression in 1930. Each bear market has ended with the same result -- a recovery rally.
Some bear markets have yielded to spectacular bull market runs. For instance, the bear market in 1949 reached its lowest level on June 13 of that year. The ensuing bull market ran for 9,146 days (more than seven years) and gained 267.1% by the time it peaked. When the Great Recession troughed on March 9, 2009, a bull market then produced a 400.5% gain and lasted 1,997 days (nearly five and a half years) until it peaked. Perhaps most astonishingly, the bear market induced by Black Monday reached its nadir on Dec. 4, 1987. After that, it took only 701 days (less than two years) for the market to reach its top, resulting in a 582.1% return.
Source Fool.com
