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Wednesday, November 14, 2007

Bear market


In a financial market the bear market is said to be a condition in which maximum of the stocks as well as overall stock indices are making lower lows. Bear market is said to be an inappropriate period for making any stock investing but with strict discipline and proper strategy one can still easily make money through stock trading.

Bear market is much played with the sentiment of economy. Any recession or possibility of slowdown in economy gives rise to bear market and this period is worthless for making any short term or mid term stock investing, however one can take long term view for stock investing by finding out excellent stock which can show strong growth potential even if the economy is in recession stage.

In bull market there could be a significant correction which only could be called as short term “stock correction” but it can’t be called as bear market because the tendency of stock which are corrected bounce back immediately at the same pace and again resumes their bull trend.

Unlike the bull market bear market is very harmful for stock investors as it becomes a very difficult task to make out perfect stock for stock investing which will give high returns.

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