March 1, 2023
Bear Markets Come and Go – 35% Annuity Bonus Will Help
By Richard J. Schillig, CLU, ChFC, LUTCF
Independent Insurance and Financial Advisor
The longest bull market in history lasted almost 11 years before coronavirus fears and the realities of a seriously disrupted U.S. economy brought it to an end.
If you are losing sleep over volatility driven by a cascade of disheartening news, it may help to remember that the stock market is historically cyclical. There have been 10 bear markets (prior to this one) since 1950, and the market has recovered eventually every time.
Our clients with the fixed index annuity have not lost values. Further an insurance company is paying a 35% bonus on new investments. It may be worth considering this bonus to bring a halt to stock market losses.
Before moving on let me remind you of our monthly Virtual Community Meetings coming up on March 21 & March 23. Craig conducts these meetings and provides a wealth of information. On Tuesday March 21 Craig reviews the basics of Medicare and then focuses on the Medicare Supplement Plans that are available. Two day later on Thursday March 23 he again reviews the basics of Medicare and then focuses on the Medicare Advantage Plans available in these Medicare Regions and especially what we believe is the more competitive Advantage Plan and that is the AARP Medicare Advantage Plan. This plan is underwritten by United Healthcare. AARP is NOT an insurance company. AARP merely sells their logo to United Healthcare to be used on their products. In order to participate in these very informative Community Meetings, call Craig at 563.332.2200. He will give you instructions on how to participate in these meetings from the privacy of your home using your laptop or desktop computer. Attendees at these meetings all tell us the same thing. They say “now I understand the choices I have for Medicare.” With 10 Medicare Supplement Plans – we get to choose one. And with 18 Prescription Drug Plans – we get to choose one. And with 8 Medicare Advantage Plans – we get to choose one. It’s no wonder there is confusion. Participate in these Virtual Community Meetings so you understand what your choices are for Medicare. Call to register for one or both of these meetings. Or email me to register at rjsandassoc@att.net
Bear markets are typically defined as declines of 20% or more from the most recent high, and bull markets are increases of 20% or more from the bear market low. But there is no official declaration, so in some cases there are different interpretations regarding when these cycles begin and end.
On average, bull markets lasted longer (1,955 days) than bear markets (431 days) over this period, and the average bull market advance (172.0%) was greater than the average bear market decline (-34.2%).
| Bear Markets | Calendar Days | Stock Market Decline |
| Since 1950 | to Bottom U.S. | (S&P 500 Index) |
| August 1956 to October 1957 | 446 | -21.5% |
| December 1961 to June 1962 | 196 | -28.0% |
| February 1966 to October 1966 | 240 | -22.2% |
| November 1968 to May 1970 | 543 | -36.1% |
| January 1973 to October 1974 | 630 | -48.2% |
| November 1980 to August 1982 | 622 | -27.1% |
| August 1987 to December 1987 | 101 | -33.5% |
| July 1990 to October 1990 | 87 | -19.9%* |
| March 2000 to October 2002 | 929 | -49.1% |
| October 2007 to March 2009 | 517 | -56.8% |
*The intraday low marked a decline of -20.2%, so this cycle is often considered a bear market. The bottom line is that neither the ups nor the downs last forever, even if they feel as though they will. During the worst downturns, there were short-term rallies and buying opportunities. And in some cases, people have profited over time by investing carefully just when things seemed bleakest.
If you’re reconsidering your current investment strategy, a volatile market is probably the worst time to turn your portfolio inside out. Having said that remember our fixed index annuity is currently paying a 35% bonus. This bonus will help provide recovery for these losses.
The S&P 500 is an unmanaged group of securities that is considered to be representative of the U.S. stock market in general. The performance of an unmanaged index is not indicative of the performance of any specific investment. Individuals cannot invest directly in an index. Past performance is not a guarantee of future results. Actual results will vary.
Richard J. Schillig, CLU, ChFC, LUTCF is an Independent Insurance and Financial Advisor with RJS and Associates, Inc. He can be reached at (563) 332-2200.
