Bear mkt? Don’t panic yet

In Financial competency on 23/01/2016 at 1:41 pm

Does a bear market inevitably mean recession? No. The 23% one-day decline in American equities in October 1987 (Black Monday) was not followed by an economic downturn. The dotcom boom, and the surge in house prices in America and elsewhere, showed that prices can lose track with fundamentals. The recent decline may merely indicate that share prices were overvalued, and are now coming back to earth, or even a sign that investors have become too pessimistic. More economic news, and more company results, will be needed to tell whether this market signal is the real thing, or just a fake.

  1. Bear markets and crashes are where fortunes are made. I made most of my money from bear markets… whether in stocks or properties. That’s why I always say no worries man… Golden times ahead.

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