Bear Market, Recession Loom Large

The recession is another story. According to the National Bureau of Economic Research, the average duration of post-World War II recessions is 11 months from peak to bottom. The longest decline came from November 1973 through March 1975, a total of 17 months. The last extended recession came from July 1981 through November 1982. Then there was a brief downturn from July 1991 through March 1992.

But those recession statistics only mark the drop. Some recoveries were quick -- a "V" formation, while others dragged on, an "L" formation. History doesn't give a reliable guide to economic rebounds.

One fact is obvious: Most people under age 40 haven't had to cope with a real recession in their working lifetime! This slowdown will come as a shock.

So here's one small consolation: Stock markets tend to rebound before the economy, giving investors something to cheer about during the worst of the slowdown. And that's The Savage Truth.

Nobody ever made a dime by panicking, says Jim Cramer. Moneymaking opportunities exist despite the market turmoil. So where's a market master like Cramer putting his money these days? Check out his personal portfolio at Action Alerts PLUS. Take a free trial now.