The first period of the bull market. Some coincidences with the third stage of the bear market often occur when the market is most pessimistic. Most investors are discouraged by the market and are indifferent even if there is good news in the market. Many people start selling all their shares at any cost. Visionary investors expect market conditions to change soon through analyzing various economic indicators and situations, and begin to gradually select buyers of high-quality stocks. Market transactions gradually rebounded slightly. After a period of time, many stocks have flowed from blind sellers to rational investors. The market occasionally declined during the recovery process, but the lows of each decline were higher than the last time, thus attracting new investors to enter the market and the entire market became active. At this time, the operating conditions and company performance of listed companies began to improve, and the increase in profits attracted the attention of investors and further stimulated people's interest in entering the market.
The second period of the bull market. At this time, although the market conditions have improved significantly, the sharp decline in the bear market has left investors in fear. The market is in a deadlock of neither rising nor falling, but overall, the market tone is good and stock prices are trying to rise. This period can last for several months or even more than a year, depending on the severity of the psychological impact caused by the last bear market.
The third period of the bull market. After a period of hovering, the stock market trading volume has continued to increase, and more and more investors have entered the market. Every decline in the market will not only not allow investors to exit the market, but will instead attract more investors to join. The market sentiment is high and full of optimism. In addition, good news from the company has been constantly circulating, such as double profits, mergers and acquisitions. Listed companies also take the opportunity to raise funds, or give bonus shares or split shares to attract small and medium-sized investors. At the end of this stage, the speculative atmosphere in the market was very strong. Even if there was bad news, it would be hyped and hot topics and turned into good news. The stock prices of junk and unpopular stocks have risen sharply, while some stable high-quality stocks have been ignored. At the same time, the stock market boom swept across all corners of society, including men, women, young and old, all joining the stock market army. When this situation reaches a certain extreme, the market will see a turning point.
Bear market is the opposite of bull market. There are more sellers than buyers in the stock market, and a bearish stock market is called a bear market.
The first phase of the bear market. The early stage is the end of the third period of the bull market, which often occurs when market investment sentiment panics. At this time, the market is not optimistic, and investors are not alert to changes in the future. All kinds of good news are difficult to distinguish between true and false, and it fills the market, and the company's performance and profitability have reached an abnormal peak. Many companies accelerated their expansion during this period, and news of mergers and acquisitions frequently spread. While the vast majority of investors are crazy about the stock market rebound, a few wise investors and individual investors have begun to gradually or wait and see. Therefore, although the market is very hot, there are signs of gradual cooling. At this time, if the stock price rises further but the trading volume cannot keep up, a sharp decline may occur. During this period, when the stock price fell, many people still believe that the decline is just a pullback in the upward process. In fact, this is the beginning of the stock market crash.
The second stage of the bear market. At this stage, any turmoil in the stock market will trigger a "panic sell-off". On the one hand, there are too many hot spots in the market, and people who want to buy are waiting and watching because it is difficult to make a choice. On the other hand, more people started to rush to buy, exacerbating the rapid decline in stock prices. Speculators who short trades are hit harder in markets where credit trading is allowed. They are often forced to sell due to pressure to repay the funds. As a result, the stock price fell faster and faster and was out of control. After a crazy selling and a sharp decline in stock prices, investors will feel that the decline is a bit too large, because the current situation and economic environment of listed companies have not reached this level of pessimism, so the market will experience a big rebound and rebound. This medium-term rebound may last for weeks or months, and the rebound or rebound is generally one-third to one-half of the total market decline, and the third stage of the bear market. After a period of medium-term rebound, the economic situation and the prospects of listed companies have deteriorated, the company's performance has declined and financial difficulties.All kinds of bad news that are difficult to distinguish between true and false have come one after another, further undermining investors' confidence. At this time, the entire stock market was filled with a pessimistic atmosphere, and the stock price rebounded and fell sharply.
Bear market third period, the stock price continued to fall, but the decline did not intensify. Since the poor quality stocks in the first and second phases have almost fallen, there is little chance of falling again. This time, due to the collapse of market confidence, the falling stocks are concentrated in blue-chip stocks and high-quality stocks, performing well. This stage coincides with the beginning of the first phase of the bull market. Foresighted and rational investors will think this is an opportunity to absorb funds. At this time, buy low-priced high-quality stocks and get rich returns when the market rebounds.
Generally speaking, the time of a bear market is shorter than that of a bull market, accounting for only one-third to one-half of the bull market. However, the specific time of each bear market is different, and there will be great differences due to the differences in the market and economic environment.
