NIR KAISSAR: Bear market posing as a cub could turn into a stock killer

  • 📰 BDliveSA
  • ⏱ Reading Time:
  • 39 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 63%

Nigeria News News

Investors who have not felt the pain of a long downturn may think that sell-offs are always brief

The bear and bull statues outside the Frankfurt Stock Exchange. Picture: BLOOMBERG/ALEX KRAUS

Another reason could be that investors are becoming better at tuning out the market’s gyrations. With every sell-off, they gain confidence that the market recovers eventually, even from harrowing declines like the dot-com bust in 2000 or the 2008 financial crisis. That may also explain why, by all indications, most investors hung on to their stocks during the pandemic-induced sell-off in 2020.

It’s easy to underestimate the torment of an extended bear market if you’ve never encountered one. Neither millennials nor members of Generation Z were old enough to experience the dot-com crash, the most recent multiyear bear market. Reading about it isn’t the same as living it, but for the uninitiated, it’s worth reflecting on the anatomy of that downturn.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines