Australian Equities – In the Bear Zone

Reflecting on the following chart via Pragmatic Capitalism (here) – got to thinking about how the same might apply to Australia:

So herewith is the log chart of the All Ordinaries price history since 1875:

Now you might argue about the choice of market cycles – I admit to liking the symmetry of ~27-year bull markets against ~13-year bear cycles. But the point remains that with 2007 ushering the end of the global debt party it looks likely that we’ll be trading in the bear zone for some years to come.