Secular bear markets refer to economic conditions where stocks, real estate, commodities and the general economy are extremely volatile with a downward bias. This is caused by underlying fundamental forces of excesses that were created for long periods of time in the previous growth cycle. Secular bear markets differ from cyclical bear markets due to the fact that they have a long-running (15 to 22 year range) and well established fundamental and cycle driven downward trajectory in markets.
They result in a change of behavior and perception among society towards investments and the financial system.
This article will examine the last two secular bear markets that have occurred in the modern/post industrialized world economy.