US Equity Bear Markets and Continuous Long-Term Growth: Chart

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Bear markets are often the best time to invest in equities. This is because bull markets follow bear markets always. Bear markets can be considered as the duration when excesses of the previous bull markets are washed off. The following is an awesome chart that shows the US bear market lengths and the overall rise in markets as referenced by the S&P 500 index value in green color on the right:

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Source: The Bear Market issue, Permanent Wealth Partners

For example, at the depth of the Global Financial Crisis (GFC) of 2007-2009 the S&P 500 reached 677 after a brutal bear market that prolonged for 17 months. Then by the time the next bear arrived in 2011 the index value was 1,099 or the next one in 2018 when the index was even higher at 2,351.

So the key takeaway for investors is not to focus too much on the bear market volatility and violent movements and instead focus on their long-term and invest consistently taking advantage of lower prices.

Related ETF:

  • SPDR S&P 500 ETF Trust (SPY)

Disclosure: No Positions

The Power of Regular Contributions: An Australian Example

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Regular periodic contributions in equities can generate spectacular wealth especially over the long-term. The following chart shows the power of regular contribution. The difference in returns is indeed astonishing due to the regular investing and the effects of compounding:

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Source: Vanguard Australia

Related ETF:

  • iShares MSCI Australia ETF (EWA)

Disclosure: No Positions

Update on PetroChina ADS Termination

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On Aug 12, 2022 Chinese state-owned oil major PetroChina Company Limited (PTR) announced plans to delist its ADS from the NYSE. The depository BNY Mellon has published the termination notice. According to this notice, the ADR will be terminated effective Monday, Oct 17, 2022. An excerpt from the notice:

Under the terms of the Deposit Agreement, you have until at least Friday, October 20, 2023, to surrender your PetroChina ADRs for delivery of the H shares. If you surrender ADRs for delivery of the H shares, you must pay a cable fee of $17.50, a cancellation fee of up to $5.00 per 100 ADSs surrendered, and any applicable U.S. or local taxes or governmental charges. Payment should be made payable to The Bank of New York Mellon.

Subsequent to Friday, October 20, 2023, under the terms of the Deposit Agreement, the Depositary may attempt to sell the H shares. If the Depositary has sold the H shares, you must surrender your ADRs to obtain payment of the sale proceeds, net of the expenses of sale, any applicable U.S. or local taxes or government charges and a cancellation fee of up to $0.05 per ADS.

To surrender your ADRs, the address of the Depositary is: The Bank of New York Mellon, 240 Greenwich Street, Depositary Receipts Division – 8th Floor, Attention: Cancellation Desk, New York, NY 10286. Registered or overnight mail is the suggested method of delivering DRs to the Depositary.

Source: BNY Mellon

PertoChina H shares trade on the Hong Kong Stock Exchange under the ticker 0857.HK.

Earlier:

Disclosure: No positions

Australian Bull and Bear Markets From 1970 to June 2022: Chart

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The average bull market in Australian equities lasted for 65 months and the average bear market lasted for 14 months based on Australian All Ordinaries Index returns from1970 to end of June, 2022. The average bull market return was 157% and average bear market decline was 29%.

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Source: Market Insights, Bull and Bear, July 2022, BT

Related ETF:

  • iShares MSCI Australia ETF (EWA)

Disclosure: No Positions

Comparing U.S. Healthcare Spending to Other OECD Countries

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Healthcare spending in the US is the highest in the world. On a per capita basis the US spends more than any other OECD country as the below chart shows.

In 2021, the US spent $12,318 per per person in healthcare spending. The second highest among OECD countries was Germany at $7,383 followed by Switzerland. The OECD average excluding the USA was $5,829 per person. Hence the US spending was more than double that of the OECD average.

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Source: HOW DOES THE U.S. HEALTHCARE SYSTEM COMPARE TO OTHER COUNTRIES?, Peter G.Peterson Foundation