3 Bear Market Indicators to Watch For | Fisher Investments

Think you can spot the next bear market? It may be more difficult than you think. Even if you think a downturn is ahead, trying to time the market is one of the biggest risks you can take for your investing goals. In this Fisher Investments Market Insights video, Bryan Schofield discusses the dangers of trying to time market downturns, as well as some indicators that a deep, prolonged downturn is underway.
A bear market is defined as a fundamentally driven drop of about 20% or more over an extended period. It may seem easy to pinpoint a bear market in hindsight, but identifying a bear market in the early stages is much more difficult. The key is having perspective on what you should watch for and the discipline to prevent your emotions from getting in the way.
There are many indicators a bear market is under way, but our research has shown that bear markets start in one of just two ways: the “wall” or the “wallop.” The “wall” refers to the end of the “wall of worry” bull markets climb. The bull market climbs the wall of false fears until investors believe that the market will rise forever and they develop an “it’s different this time” mindset. Once investor sentiment reaches euphoria, stock results cannot keep up with sky-high expectations and the bull market runs out of steam. The “wall” feature is often accompanied by another important indicator of a downturn: underappreciated fundamental market weaknesses.
We refer to the other way that bull markets end as “the wallop.” The wallop is an unexpected negative big enough to knock a few percentage points off global GDP, “walloping” an otherwise strong economy and bull market. For more on these bear market factors and other indicators to look for, watch on.

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Видео 3 Bear Market Indicators to Watch For | Fisher Investments канала Fisher Investments