Everyone has been talking about this 'Bear' coming into town. Pretty strange financial jargons, we know. But that's why we've listed everything you should know about it by giving you some historical context of how markets usually perform.
What a great week. The weather is here. Finally got my sunnies out.
But it’s not been a good week for the stock market. A bear has been spotted.
And what does this bear, which everyone keeps talking about mean?
Well, this bear basically means that the stock market has dropped 20% from its recent highs, and that’s what’s known as a bear market.
So what’s causing this bear to come out from the woods to play today?
1. is inflation.
2. is interest rates rising.
3. is global conflicts.
And how long is this bear here to stay for? Well, no one really knows.
What we do know from history is, on average, the bear markets last around about 289 days on average.
The bull market, which is when the markets are rising less than average 991 days.
And as my old Math's teacher used to say “It’s all in the numbers”.
And what those numbers tell us is that avoiding rushed decisions, avoiding bandwagons, staying steady and consistent can often pay off.
Money at risk when investing. Remember the value of your investments can go up as well as down and past performance is never a guarantee of future performance.
Nosso does not give financial advice and the numbers used are to provide a helpful illustration.