When Will This Bear Market End?
By the time you read this, the bear market might already have ended.
If it hasn’t already ended, it might end tomorrow.
It might end this month.
It might end this year.
It might end next year.
It might end sometime after that.
Bear markets are somewhat difficult to accurately define. We fully know their accepted definition is a fall of 20% or more from their peak.
The Australian stock market peaked in November last year and is now down around 25%, making it officially a bear market.
But it’s not a bear market for large resources stocks.
Yet it’s an even bigger bear market for most banks, retailers and smaller companies.
So although this is officially a bear market, it doesn’t mean all stocks are falling, and it doesn’t mean all stocks are falling by the same amount.
As usual with stock market investing, it’s a case of picking the winners and avoiding the losers.
What The Very Best Investors Do In Times Like These
What do you do during these times of periodic stock market wobbles?
But what really sets the best investors apart from the average investors is their ability to calmly and rationally assess the situation, to concentrate on the underlying value of the company and not its falling share price, and to take advantage of the falling share market to buy some more of their favourite shares at even cheaper prices.