Martin Pring, a Principal at Pring Turner Capital Group, was featured in a Barron’s article entitled Time for the Defense to Take the Field, written by Randall Forsyth. The article was published in the Up and Down Wall Street column and discusses what investors must do to avoid another Lost Decade.
“…Similarly, Martin Pring, the veteran market technician who heads up the Pring Turner Capital Group investment advisory, sees the U.S. stock market still mired in a “Lost Decade” of nil net equity returns. Indeed, based on the history of past secular bear markets, we’re only halfway through the current episode, he contends.
From a fundamental standpoint, the market continues to confront far greater difficulties than in the past, Pring observes.
“To give you an idea of the kind of challenges faced by investors in a secular bear market, it is worth noting that the last secular bull market (1982-2000) covered 18 years but contained only two recessions last a total of 12 months — that is, less than 6% of the time.
“Compare that to the last 10 years, in which the secular bear market experienced two recessions last a total of 28 months, or about 27% of the time. That is far closer to the U.S. experience of the past 150 years, where the economy spent an average 31% of the time in recession,” he adds.
That means investors need to be nimble, given the greater economic volatility, Pring continues. “Essentially, an investor needs two game plans; one for defense, to protect assets in difficult periods, and one for offense, to grow wealth during favorable conditions.”
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