Invest Every Month
Build Wealth
Bear Market Or End Of Correction?
Are we nearing the end of a correction or are we headed toward a bear market?
From what I understand, a market correction is a drop of 10% and a bear market is a drop of 20%.
Personally, I think the only way we could be in a bear market is if we are headed for a double dip recession. The private sector jobs report last week didn't exactly give me hope that we won't see a double dip recession, but the general trend has been upward for the past year. Investors might have gotten a little too excited which caused the market to race up. Now we are probably seeing the correction for that over excuberance.
I also think the excitement felt by investors has given way to the memory how how fast the market can fall. The European debt crisis, the oil spill, the financial regulation bill, etc... are all making investors warry about where the market is headed.
If the market does reach bear territory, I will be buying as much stock as possible when I find good deals. I think the United States is poised for a strong few years. I enjoy buying stocks when everyone else is selling sue to having a case fo the jitters.
From what I understand, a market correction is a drop of 10% and a bear market is a drop of 20%.
Personally, I think the only way we could be in a bear market is if we are headed for a double dip recession. The private sector jobs report last week didn't exactly give me hope that we won't see a double dip recession, but the general trend has been upward for the past year. Investors might have gotten a little too excited which caused the market to race up. Now we are probably seeing the correction for that over excuberance.
I also think the excitement felt by investors has given way to the memory how how fast the market can fall. The European debt crisis, the oil spill, the financial regulation bill, etc... are all making investors warry about where the market is headed.
If the market does reach bear territory, I will be buying as much stock as possible when I find good deals. I think the United States is poised for a strong few years. I enjoy buying stocks when everyone else is selling sue to having a case fo the jitters.
Tags: bear market, correction
Views: 7
Replies to This Discussion
-
Permalink Reply by Nathan Andover on -
I am an optimist so I have been wrong before when I thought that certain markets would bounce back. I din't think the tech crash in 2000 - 2001 would be as bad a s it was. I thought the War in Iraq was illegal and based on bad arguments, but I never thought it would last so long and be so disasterous for so many people.
With consumer confidence rising and jobs starting to come back, it seems we are headed in the right direction. I think it would be unlikely to see a double dip recession, but I recognize that there are still a lot of problems in the economy.
The stock maket raced upwards pretty fast after the huge "great recesssion" drop. Probably a little too fast as we have seen a couple corrections already. This is a deeper than normal correction as it is already a drop of around 15%, but the trend upward was also a little more than normal.
Personally, I see this as a buying opportunity. Then again, I warned you that I am an optimist.
-
Permalink Reply by Tom McCann on -
This market is hard to understand. Just when I think we are heading back up, we fall below 10,000 again. We are nearing the lows for the year. I want to think this is a good time to buy some stocks, but who knows. Paul Krugman at the New York Times thinks we are in the middle of a third depression. He says the Great Depression had moments like this where thinks were looking better only to fall back to crap again.
-
Permalink Reply by Nathan Andover on
-
I wonder how much the Republicans negativity and Paul Krugman's warnings about another depression have on the nations economic mood. The economy needs people to be confident so they start spending again. I would think that some of this negativity about the prospects of the economy are self perpetuating.
© 2012 Created by Invest Every Month.
