Australia's shares are set to enter a bear market, but there's a two in three chance investors who buy in will emerge with a profit if they hang on for a year, Credit Suisse said.
So far, Australian stocks have avoided bear territory, but just by the skin of their teeth; at Friday's close, the S&P ASX 200 was down around 18 percent from its 52-week high of 5,982.69, set in April 2015, despite posting a 1.07 percent rally for the day.
Credit Suisse expects that could change at any time.
But if it does, it's likely to be a Gummy bear that grips equities, not a Grizzly, the bank said in a note on Thursday, after examining the past 12 bear markets Down Under. That's a nod to a popular sticky, bear-shaped candy.
In a Grizzly bear market, the index falls by a further 20 percent, while under the Gummy scenario, the benchmark would rally by an average 24 percent over the next 12 months, Credit Suisse said.