Quiz Question of the Month!

Since 1960, how many bear markets has the Australian All Ordinaries Index endured? (A bear market is defined as a fall of the index by 20% or greater).

a. Four

b. Six

c. Nine

Show Answer

The answer is C!

If we define a “bear market” as a peak to trough fall of security prices by 20% or greater, we find the Australian share market has experienced nine such periods since 1960. So whilst the circumstances causing the current market downturn are unprecedented in modern times, bear markets do happen.

The good news is that markets do tend to go up in the long-term. It’s worth reminding ourselves that past upheavals, such as the 1918-19 Spanish flu outbreak, have never stopped economic activity from picking up and markets recovering.

Although it is hard when it is your own money on the line, the Raiz philosophy of regular, disciplined investments, can be one of the keys to a healthier balance in the long run.

If you have answered this question from our “Chance to WIN – Quiz of the Month” email before May 1, you are now in the running to win a copy of Noel Whittaker’s book ‘Making Money Made Simple’. If not, simply check for an email titled “Chance to WIN: $50 bonus”, answer this question within the email, and you will automatically be in the draw for the month!

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