The Numbers Are Pretty Clear

We are in a bear market. The questions, for investors and retirees on a fixed income: How bad is it? And how long will it last?

Three facts from Bonner Private Research:

* The average bear market on the S&P 500 lasts 13.7 months and ends with losses of around 38%. That’s based on data from the eight bear markets since 1973. (A bear market being defined as a decline of more than 20% from the high.)

* The 1973 bear market lasted 21 months and resulted in a peak-to-trough decline of 48%. It took 69 months to make new highs. The dot.com bear lasted 31 months, saw a 49% peak-to-trough decline, and took 31 months to make new highs. The 2007 crash lasted 17 months, resulted in a 57% decline, and took 40 months to recover from.

* This bear market, so far, has lasted six months and resulted in a decline of around 20%.

After enduring the pandemic, ride-share companies like Uber and Lyft are now facing high inflation, driver shortages, and dwindling passenger numbers. According to a new report, the average fare is at an all-time high. And collectively, the companies had 20% fewer riders and 35% fewer trips in Q1 compared to Q1 2019. Click here.

New data shows home prices jumped 20% year-over-year in March. The rise marks the highest jump in the S&P CoreLogic Case-Shiller Home Price Index in its 35 years of data collection. Click here.

The Biden administration’s proposed tax holiday for gas is dumb for so many reasons. First, because it could only, at best, make a 2% difference of 15 cents. But also because this type of tax – a use tax – is one of the few that actually helps keep prices low. Click here.