Bull and Bear Market Impact on Returns – An Australian Example

How do Bull and Bear Markets impact returns? The following chart shows the impacts based on three contribution strategies from an Australian perspective. The returns are from 1980 thru the end of June, 2020. Consistent monthly contributions yielded the highest return than a single one-time lump sum payment. Similar to the US market, the chart also shows that the average bull market is much higher than the average bear market.

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Source: Vanguard Australia

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