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.
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If it is a Sovereign – it will be done by parcel sales to interested investors – these investors however – will have withdrawn from these markets.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.