BB Fact Sheets – Money – Bear Market 

What is a ‘Bear Market’?

• A Bear Market is when the stock and share market index drops steadily over a period of time. This tends to lead to people selling their stocks and shares, which only continues and accentuates the initial fall in value.

• Stocks and shares have to drop in general by a specific amount in a certain period of time in order for it to qualify as a 'Bear Market'. The most famous is, of course, the Wall Street Crash of 1929, which resulted in the Great Depression.

• Downward motion is not a problem in and of itself – fluctuations in stock and share prices occur naturally. It is only when shares plummet by a very large amount that real problems occur.

• The most recent example of a Bear Market was the November 2008 crash of the American stocks and shares, which resulted in significant problems in their Stock exchange which has resonated throughout the world.

• Many Baby boomers grew up in the post war period and have generally enjoyed a period of growth since then with some ups and downs in the 70’s, 80’s and 90's. Their parents would have experienced the Great Depression, or had immediate family who went through this extremely tough period.

• In today’s global credit crisis, significant losses in the value of people’s homes, investment properties, shares, and Superannuation has affected most Baby Boomers.

• There are no firm predictions (as at May 09) as to when the World economy will recover and economic growth return once again. Most Western economies are in or close to Recession. Seeking advice from a professionally recognised financial advisor about securing your financial position and opportunities for growth may be of assistance.

• If you are experiencing financial difficulty, you may choose to use financial counselling services which are available in every State and Territory and often provide a free, independent, and confidential discussion of your situation.

• Financial counsellors can help you remain independent and take full control of your own financial affairs. They can help you manage a short-term crisis and plan to prevent a future one.
  

Credit Ombudsman Service                                          - 1800 138 422

Financial Ombudsman Service                                      - 1300 780 808

NSW - Consumer Credit Legal Centre                           - 1800 808 488

QLD - Financial Counselling Service                            - 07 3321 3192

VIC - Financial & Consumer Rights Council                  - 03 9663 2000

WA - Consumer Credit Legal Service                           - 08 9221 7066

SA - Community Legal Service                                     - 08 8362 1199

TAS - Anglicare Financial Counselling Service             - 03 6234 3510

NT Anglicare Top End Financial Counselling Service  - 08 8985 0000

ACT - Care Financial Counselling Service                 - 02 6257 1788

Centrelink Financial Information Services                   - 13 23 00

ASIC information line                                                  - 1300 300 630

Australia - http://www.fido.gov.au/fido/fido.nsf#

              - http://www.understandingmoney.gov.au/content/default.aspx

              - www.asic.gov.au

              -  http://www.asx.com.au/

 

Indigenous Australians:

Fido for Indigenous Australians -  http://www.fido.gov.au/fido/fido.nsf/byHeadline/Indigenous

 

Multicultural Information:

Fido in LOTE                            -  http://www.fido.gov.au/fido/fido.nsf/byHeadline/Publications

What to do in a falling share market        - http://www.fido.gov.au/Whattodoinafallingsharemarket

Margin loans explained                           -  http://www.fido.gov.au/Margin+loans

Investing in shares                                 - http://www.fido.gov.au/Shares+Home+Page

Buying and selling shares                        - http://www.fido.gov.au/Buying+and+selling+shares

Buy, sell or hold – what do they mean?     - http://www.fido.gov.au/Buy%2C+sell+or+hold

Are shares the best investment for you?   -  http://www.fido.gov.au/best+investment+for+you

Tips for Starting to invest in shares          - http://www.fido.gov.au/buying+shares+in+a+business

Share tips and advice                             - http://www.fido.gov.au/Warnings+about+investing+in+shares

ASX - Creating 'Watchlists' of your shares - http://www.asx.com.au/resources/myasx/watchlists/index.htm

Financial Health Check                           - http://www.understandingmoney.gov.au/Consumer/healthcheck/

Free copy of your credit file                     -  http://www.mycreditfile.com.au/home/home_default.aspx

Commonwealth Financial Counselling  - http://www.fahcsia.gov.au/sa/families/cfcp-cfcp_directory.aspx

Financial Counselling Services in Australia- http://www.fido.gov.au/Financial+counselling

Centrelink Financial Counselling Service - http://www.centrelink.gov.au/internet.nsf/services/

List of Personal support services - http://www.fido.gov.au/byHeadline/Personal%20support

Commonwealth - Rural financial counselling scheme -  http://www.daff.gov.au/agriculture-food/drought/rfcs

Disclaimer: The information contained in this section should not be used for individual financial advice. Please seek independent financial advice if you have concerns or specific questions relating to your money.

This article was created by Jennifer Lawrance for babyboomers.com.au - Australia's website for Baby Boomers. Sources include ASIC and the Federal Government. Babyboomers.com.au is an online resource to help people find information and services on health, money, travel and recreation

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