2023-06-04 23:00:00
Written by Abdul Halim Salem
Monday, 05 June 2023 02:00 AM
From time to time, investors hear terms such as the bear market and the bull market to describe certain movements in the stock markets.
The two terms can be briefly defined as a downward market occurring when stocks decline, and an upward market when stocks rise, but the matter is not devoid of some details.
During a bear market, a sharp decline in prices occurs Stock prices Investor confidence collapses and risk prevails, while in the bull market, stocks witness successive rises and increasing confidence among investors, which is reflected in a strong economic environment.
More precisely, a bear market is a decline in a stock index of 20% or more from its most recent peak.
On the other hand, according to CNBC Arabia, the bull market is embodied in a 20% rise in the stock market from recent declines.
How can you invest in a bearish or bullish market?
As an investor, both scenarios in a bear market and a bull market must be understood in order to decide what to do with his money.
Bear market investors tend to liquidate their investments during this time to not be exposed to the risk of losing more money.
On the other hand, investors may sell in a bull market Bull Market Some of what they own from their shares to make a decent profit or perhaps wait in the hope that the shares will rise to higher levels in the future
While it is easy for investors to know what is happening in the market, experts generally advise leaving investments for a longer period and not looking at the portfolio in order to avoid fluctuations in the market.
Of course, the investor has a natural instinct to want to respond to what is happening in the market immediately and try to reduce the loss or take a profit, but it is better (as experts advise) to avoid any sudden reaction as much as possible.
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