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✏️My Opinion : Even elite athletes need rest days to stay healthy. Sometimes financial markets need to reset from record-setting performance too .
🤔 Here is what you need to know about bear 🐻 phases or down markets .
Phases of a Bear Market
Bear markets usually have four different phases :
The first phase is characterized by high prices and high investor sentiment.
Towards the end of this phase, investors begin to drop out of the markets and
take in profits.
In the second phase, stock prices begin to fall sharply, trading activity and
corporate profits begin to drop, and economic indicators, that may have once
been positive, start to become below average. Some investors begin to panic as
sentiment starts to fall. This is referred to as capitulation.
The third phase shows speculators start to enter the market, consequently
raising some prices and trading volume.
In the fourth and last phase, stock prices continue to drop, but slowly. As low
prices and good news starts to attract investors again, bear markets start to
lead to bull markets.
"Bear" 🐻 and "Bull" 🐂
The bear market phenomenon is thought to get its name from the way in which a bear attacks its prey—swiping its paws downward. This is why markets with falling stock prices are called bear markets. Just like the bear market, the bull market may be named after the way in which the bull attacks by thrusting its horns up into the air.
👉🏻SOURCE : https://www.investopedia.com/terms/b/bearmarket.asp👈🏻
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~Thereaaal_med