The current recession and bear market may be more than half over, one financial advisor says.
Leon LaBrecque, managing partner and founder of LJPR L.L.C., Troy, Mich., notes that out of the 13 bear markets and 15 recessions America has suffered since 1926, there have been 9 “bear-cessions,” as he calls them. Those are recessions and bear markets that run roughly concurrently.
The bear market almost always outlasts the recession, LaBrecque says.
The current economic downturn is a bear-cession, LaBrecque contends.
Here are some of his observations about the 8 previous bear-cessions:
- The average length of the recession was 14 months.
- The average length of the bear market was 23 months.