What is a Bear Market?
There is only one thing in the whole world that outdoes the 'ups n downs' of Life.
That is the ups and falls of a stock market, for many people this connects directly to their workstation, job-models and career infrastructure.
So, maybe this is not that different at all.
If you scale through the business magazines flashing Sensex, Forex and all hard-up terms you will always find the term 'BEAR MARKET'.
The question now is "What is a Bear Market?'.
Bear market is the condition which every company and stockbroker fears, when stock market diminishes, even beyond 20 percent it is called a 'Bear Market'.
When there is an alarming level of fall in the stock prices, it usually is caused by the profit falls of a corporate industry, or for the fall to a more reasonable price in fear of the substitution effect.
It is the exact contradiction of Bull Market.
The huge chain of investors sell off their shares either afraid of lesser earnings or by the lofty prices they have now.
This causes the price to drop at a sharp degree, resulting in more investors to share the same panic and sell off their stocks as well; thereby creating an enormous vicious circle.
In the 1970's there was another thing creating havoc more than Beatles, it was the steady fall of stocks which continued for an entire decade.
The incidents like this scare away most of the investors and there are more rare chances of a new investor to invest on stock market.
It is an apathy that this awkward situation is what keeps The Bear Market running, there is less or no buyers at all who would buy the investments, therefore the selling-spree continues.
The Way a Bear- Market influences the investments- A Bear Market will result in the price-fall of your securities in investments.
It can be an overnight transition, hitting you before you even realize it.
On the other hand it can be gradual, taking almost a month, in both cases the finale is same; your holdings of stocks will decrease in counts of money.
The two following principles are the guidelines of the happenings.
1.
Bear markets tend to be bad only when you sell your stock immediately or just need your money at the very moment.
2.
When stock prices fall and there is a presence of a diminishing rate of market investment, it proves a good soil for a long term investor.
The main motto of the above criteria is to prove that the bear market only proves fatal to your finance if it's a short span investment.
If you prepare to hold the shares for decades or more, it will prove to be a great opportunity to buy at that time.
The "experts" you find giving over page counseling in magazines or your advocates, makes you sell the stocks after the price of your stocks has fallen.
The money flow in your pockets would have been more bulksome if you sell it before the fall.
Do make a question to them or just yourself "If they were such "experts" in stock markets, why couldn't they just predict the fall?" What steps you take in Bear Market? the first steps that you should take is to look for companies that can run smoothly or at least prevail for decade and more.
Although, we suggest a deep thought-work from your side before investing, for an instance if Coca-Cola's stock-price falls today then remember that the summer will come again.
This brings us to the third principle.
3.
Think, act and learn how to separate the stock price from the business undercurrent, they don't actually merge within the span of short-term investments.
If you learn to see the underlying prospects of the downfalls, then you will find the failing market as most fertile land to sow your investments.
You will always find examples of market returning to its previous grandeur or even better.
You will make profit while others will look for it! Stock-prices of the companies you previously had rough budgeting to buy will be available at much lower prices.
They will rise again, you just have to wait and watch while your stack of money rises higher.
You would find stock-bearings lower than their retail value, which just energizes the conceptions of your longtime investments making healthy profits.
The points which were above are guidelines of your profit-days.
Think, spend and reap-well.
That is the ups and falls of a stock market, for many people this connects directly to their workstation, job-models and career infrastructure.
So, maybe this is not that different at all.
If you scale through the business magazines flashing Sensex, Forex and all hard-up terms you will always find the term 'BEAR MARKET'.
The question now is "What is a Bear Market?'.
Bear market is the condition which every company and stockbroker fears, when stock market diminishes, even beyond 20 percent it is called a 'Bear Market'.
When there is an alarming level of fall in the stock prices, it usually is caused by the profit falls of a corporate industry, or for the fall to a more reasonable price in fear of the substitution effect.
It is the exact contradiction of Bull Market.
The huge chain of investors sell off their shares either afraid of lesser earnings or by the lofty prices they have now.
This causes the price to drop at a sharp degree, resulting in more investors to share the same panic and sell off their stocks as well; thereby creating an enormous vicious circle.
In the 1970's there was another thing creating havoc more than Beatles, it was the steady fall of stocks which continued for an entire decade.
The incidents like this scare away most of the investors and there are more rare chances of a new investor to invest on stock market.
It is an apathy that this awkward situation is what keeps The Bear Market running, there is less or no buyers at all who would buy the investments, therefore the selling-spree continues.
The Way a Bear- Market influences the investments- A Bear Market will result in the price-fall of your securities in investments.
It can be an overnight transition, hitting you before you even realize it.
On the other hand it can be gradual, taking almost a month, in both cases the finale is same; your holdings of stocks will decrease in counts of money.
The two following principles are the guidelines of the happenings.
1.
Bear markets tend to be bad only when you sell your stock immediately or just need your money at the very moment.
2.
When stock prices fall and there is a presence of a diminishing rate of market investment, it proves a good soil for a long term investor.
The main motto of the above criteria is to prove that the bear market only proves fatal to your finance if it's a short span investment.
If you prepare to hold the shares for decades or more, it will prove to be a great opportunity to buy at that time.
The "experts" you find giving over page counseling in magazines or your advocates, makes you sell the stocks after the price of your stocks has fallen.
The money flow in your pockets would have been more bulksome if you sell it before the fall.
Do make a question to them or just yourself "If they were such "experts" in stock markets, why couldn't they just predict the fall?" What steps you take in Bear Market? the first steps that you should take is to look for companies that can run smoothly or at least prevail for decade and more.
Although, we suggest a deep thought-work from your side before investing, for an instance if Coca-Cola's stock-price falls today then remember that the summer will come again.
This brings us to the third principle.
3.
Think, act and learn how to separate the stock price from the business undercurrent, they don't actually merge within the span of short-term investments.
If you learn to see the underlying prospects of the downfalls, then you will find the failing market as most fertile land to sow your investments.
You will always find examples of market returning to its previous grandeur or even better.
You will make profit while others will look for it! Stock-prices of the companies you previously had rough budgeting to buy will be available at much lower prices.
They will rise again, you just have to wait and watch while your stack of money rises higher.
You would find stock-bearings lower than their retail value, which just energizes the conceptions of your longtime investments making healthy profits.
The points which were above are guidelines of your profit-days.
Think, spend and reap-well.
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