He also observes that the average bear market fell another 13% from that point, giving a clue to where the bottom may be if things do indeed take another turn for the worse.
"Therefore, if the current decline were to become another bear market, and follow the historical pattern (and there's no guarantee it will), the S&P 500 will cross the 20% decline threshold by January 2012 (closing below 1091) and ultimately bottom in the low 900s by mid-2012," he writes.
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Written by Michael Baron in New York.
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