No – it is not a bear market.

DEFINITION of ‘Bear Market’ is a ‘market condition’ in which the prices of securities are falling and widespread pessimism then causes the negative sentiment to be self-sustaining.

As investors anticipate losses in a bear market and selling continues, pessimism only grows.

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Chart courtesy of Bloomberg

 

The only thing that I can see are ripples in a pond.

One can understand the Shanghai Stock Exchange correction – but why would anyone sell stocks when the markets barely moved 3 percent in a single session?

Yes Russell, S&P, NASDAQ, FTSE, DAX had a correction but to call this a bear market is way off the mark.

Would it not be height of stupidity to sell a large swathe of shares into a declining market?

If it is a Sovereign – it will be done by parcel sales to interested investors – these investors however – will have withdrawn from these markets. The only thing affected is the liquidity – which increases the volatility.

So just go in low – hold and sell during the whipsaw moves – if you can pick the pivots that is.

 

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2 thoughts on “No – it is not a bear market.

  1. Insightful, with which I agree.

    Word of warning: Don’t make it sound like you are giving advice as the ones you piss off will come after you. And, I think /know that there is a lot of pissed of speculators out there.

    “So just go in low – hold and sell during the whipsaw moves – if you can pick the pivots that is.” Could be interpreted as Investment advice and not sarcasm LOL 🙂

    Like

    1. Did I miss that big phat disclaimer?

      Bugger – a small slim disclaimer will do.

      The mentality to take on a market – requires an obtuse attitude. Was up at 1.30am (too much vino – celebrating one month in gods country and fantastic meal) and I flicked on iPad – watched opening.

      Then at 7.30am was at the cafe having a morning coffee watching the closing ripples.

      It was only a 2.4 percent move or thereabouts.

      Tracking AUD:USD daily – no that is a volatile monkey. And yes playing ..

      Sent from my iPad

      >

      Like

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