World Blog by humble servant. Bears' 20-Year Short-Selling Saga: Crushed, Again and Again
Quick Summary of How They “Propel” the Market Bull markets are the primary long-term drivers of wealth creation in equities. The compound effect of multi-year bull runs (especially 1982–2000 and 2009–2020) is responsible for the vast majority of stock market gains over the past century. Bear markets, while painful, act as resets: they purge excess speculation, force corporate efficiency, and set the stage for the next bull market (e.g., the 2009 low launched the longest bull run in history). Statistically: since 1928, the S&P 500 has spent ~75–80% of time in bull markets and only ~20–25% in bear markets, which is why long-term investors are overwhelmingly rewarded despite periodic crashes. These cycles are the heartbeat of the stock market—sharp bear declines followed by prolonged bull recoveries are the historical norm What Is a Short Squeeze? Full Breakdown A short squeeze is a rapid, violent upward move in a stock (or any asset) caused by short sellers being forced to buy...