Is the stock market a bull or bear
The first is confusion: The market stalls, and its direction sways back and forth as investors are divided as to whether it is a correction amid an ongoing bull market or the beginning of a new bear market.
In the middle stage, the market falls steadily and orderly as investors acknowledge it is a new bear market. In the final stage, the market decline accelerates as investors capitulate.
This is the first market correction sincewhich occurred during the U. The market has recovered somewhat, and based on the closing price Sept. Although we are less than halfway there, the correction-versus-bear-market debate has heated up.
Market trend - Wikipedia
So are we already in the early stage of a bear market? Past recessions have been blamed on a variety of reasons, from Internet investors going crazy during the dot-com bubble to a complacent Federal Reserve ahead of the Great Recession.
But as anyone who has experienced these periods can attest, no one really knows for sure when recessions begin, not even the almighty Fed.
Investing is not an exact science, and these numbers serve only as guidelines, unlike the temperature at which water freezes. Unlike recent market downturns, which were shallow and short, this decline indeed feels different. We can blame Greece, China or even the Fed, but I feel the fundamental reason for this downturn is that the stock market had become expensive after more than a six-year, near-non-stop advance, in which its value had more than tripled. During previous market sell-offs, including the scary U.
There is the stock market a bull or bear two ways for stocks to become cheap again: Prices must fall or corporate earnings must rise, assuming stock valuations are unchanged.
The current data suggest that the stock market is much different from the Great Recession and the dot-com bubble the previous two bear markets. Inthere were systemic risks in the entire financial system; ineconomic fundamentals are much healthier.
Instock valuations reached absurd, stratospheric levels; instocks powerpoint presentation counterfeit money though expensiveare still within sensible territory.
The current economic environment and stock valuations simply do not portend a full-blown grafico forex gratis market.
When investors get spooked, it can be difficult to predict their behavior. But once the dust settles, prudent investors will look at market fundamentals and take advantage of relative buying opportunities. Solid earnings and reasonable price multiples have been stalwarts binary options foreskin investors in past cycles.
Tim Clift is chief investment strategist one touch binary options strategies Envestnet PMCand is responsible for the development of investment strategies for client portfolios as well as manager- and fund-strategist selection methods.
By using is the stock market a bull or bear site you agree to the Terms of ServicePrivacy Policyand Cookie Policy.
America's bull market may end soon, but - Feb. 16,
Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.
Intraday guide trading futures options tutorial delayed at least 15 minutes or per exchange requirements.
ET Uber IPO prospects may be helped by resignation of CEO Travis Kalanick. Updated Financial advice from the man drafted one spot after Peyton Manning.
What's Next for Uber After its Founder Quits?
Oil falls to lowest settlement in more than 10 months. WTI oil futures log lowest finish since August. August WTI oil falls 98 cents, or 2. Opinion Georgia vote shows again that Democrats are a party of condescension, not hope. This news anchor who filled four minutes of dead air doing nothing just won the internet. Libeskind Looks Back on Ground Zero.
Updated Oil spirals to month low as U. Updated Gold rebounds after 2-session drop to lowest since mid May.
Market trend - Wikipedia
Altice USA ups IPO offering to Home News Viewer Video SectorWatch Podcasts First Take Games Portfolio My MarketWatch. Retirement Retire Here, Not There Encore Taxes How-to Guides Social Security Estate Planning Events Columns Robert Powell's Retirement Portfolio Andrea Coombes's Working Retirement Tools Retirement Planner How long will my money last?
Economy Federal Reserve Capitol Report Economic Report Columns Darrell Delamaide Rex Nutting Tools Economic Calendar. My MarketWatch Watchlist Alerts Games Log In. Until New York Markets Close Market Snapshot Winners and Losers.
Are we in an early stage bear market or a late-stage bull market? A bear market in stocks generally undergoes three stages. We Want to Hear from You Join the conversation Comment. MarketWatch Site Index Topics Help Feedback Newsroom Roster Media Archive Premium Products Mobile. Dow Jones Network WSJ.