Clear-cut undervaluations of leading common stocks (blue chip stocks) tend to occur only during bear markets. The intervals between successive market bottoms have been much longer, so that this type of opportunity must now be considered as infrequent.
In the secondary field (non-blue chip stocks), by contrast, undervaluations may be found at all times except when a bull market is well advanced. Thus the investor or analyst who is strongly interested in the undervaluation approach will find what he is looking for, more continuously or consistently, among the secondary issues.
Ref: Security Analysis by Benjamin Graham
[Bear markets occur infrequently. As a guide, perhaps, for every 4 bulls, one expects to meet 1 bear. Very severe bear markets were uncommon. This occured about 1 in 10 years, namely 1987 and 1997.]
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