Riccardoluigi
Sweden
Amin Harirchian
$SPX500 ๐„๐ง๐ ๐จ๐Ÿ ๐œ๐จ๐ซ๐ซ๐ž๐œ๐ญ๐ข๐จ๐ง ๐จ๐ซ ๐›๐ž๐ ๐ข๐ง๐ง๐ข๐ง๐  ๐จ๐Ÿ ๐›๐ž๐š๐ซ ๐ฆ๐š๐ซ๐ค๐ž๐ญโ“ ๐ป๐‘–๐‘ ๐‘ก๐‘œ๐‘Ÿ๐‘ฆ ๐ด๐‘™๐‘ค๐‘Ž๐‘ฆ๐‘  ๐‘†๐‘Ž๐‘ฆ๐‘  ๐‘Šโ„Ž๐‘Ž๐‘ก ๐ป๐‘Ž๐‘๐‘๐‘’๐‘›๐‘  ๐‘๐‘’๐‘ฅ๐‘ก. Over the past weeks, or rather, since the beginning of this year, many investors have been confused and have seen too much volatility in the markets. From early this year, many analysts have constantly been warning about the correction of the market as well as the bear market. But what exactly are these terms, and what is going on? When will these fluctuations end, when will the market take a rising position, and when will this dizziness of buying or selling end? ๐Ÿ“Š In this post, I have tried to address these terms and added historical and scientific evidence to them to show you a perspective on the near future. ๐‘พ๐’‰๐’‚๐’• ๐‘ฐ๐’” ๐‘ด๐’‚๐’“๐’Œ๐’†๐’• ๐‘ช๐’๐’“๐’“๐’†๐’„๐’•๐’Š๐’๐’ & ๐‘ฉ๐’†๐’‚๐’“ ๐‘ด๐’‚๐’“๐’Œ๐’†๐’•โ“ A market correction is a downfall of 10%-20% of a major stock index like $SPX500 , $NSDQ100 or $DJ30 from a contemporary peak. If this fall is above 20%, call it a bear market. ๐Ÿ“‰ Since the Second World War until now, the S&P 500 has undergone 27 market corrections. On the other hand, the S&P 500 has more or less seen 12 bear markets in the same period. To understand the current situation, let's look at a few examples of these market corrections over the past decade: โ–ˆ โ–‡ โ–† โ–… โ–ƒ โ–‚ ๐—ฆ&๐—ฃ ๐Ÿฑ๐Ÿฌ๐Ÿฌ ๐—–๐—ผ๐—ฟ๐—ฟ๐—ฒ๐—ฐ๐˜๐—ถ๐—ผ๐—ป๐˜€ >๐Ÿญ๐Ÿฌ% ๐˜€๐—ถ๐—ป๐—ฐ๐—ฒ ๐Ÿฎ๐Ÿฌ๐Ÿฌ๐Ÿต โœ” Jun 2009 - Jul 2009: -๐Ÿ๐ŸŽ.๐Ÿ% ๐Ÿ” Reasons: World Bank Negative Growth Forecast and Fears for the Market to Recovery after 2008 US and EU Economic crisis โœ” Jan 2010 - Feb 2010: -๐Ÿ๐ŸŽ.๐ŸŽ๐Ÿ‘% ๐Ÿ” Reasons: US Bank Regulation Plan and China's Lending Curbs โœ” Apr 2010 - Jul 2010: -๐Ÿ๐Ÿ•.๐Ÿ% ๐Ÿ” Reasons: Global Growth Concerns, Debt Crisis in EU, Flash Crash โœ” May 2011 - Oct 201: -๐Ÿ๐Ÿ.๐Ÿ”% ๐Ÿ” Reasons: Double-Dip Recession Fears, Europe's Debt Crisis, US Debt Downgrade โœ” Apr 2012 - Jun 2012: -๐Ÿ๐ŸŽ.๐Ÿ—% ๐Ÿ” Reasons: Europe's Debt Crisis and Recession Fears โœ” Sep 2014 - Oct 2014: -๐Ÿ๐ŸŽ.๐Ÿ% ๐Ÿ” Reasons: Falling Oil Price, Ebola, Global Growth Concerns and Fears โœ” May 2015 - Feb 2016: -๐Ÿ๐Ÿ“.๐Ÿ% ๐Ÿ” Reasons: China Stock Crash, EM Currencies, Falling Oil Price, Sanctions against Iran and North Korea, Greece Default โœ” Jan 2018 - Feb 2018: -๐Ÿ๐Ÿ.๐Ÿ’% ๐Ÿ” Reasons: Fed Rising Interest Rates, Inflation Fears, $BTC Crash โœ” Sep 2018 - Dec 2018: -๐Ÿ๐ŸŽ.๐Ÿ% ๐Ÿ” Reasons: Fed Rising Interest Rates, Housing Slowdown, China Slowdown, Strong $ USDOLLAR โœ” Feb 2020 - Mar 2020: -๐Ÿ‘๐Ÿ“.๐Ÿ’% ๐Ÿ” Reasons: Covid-19, Falling Oil Price, Global Depression Fears โœ” Sep 2020 - Oct 2020: -๐Ÿ๐ŸŽ.๐Ÿ”% ๐Ÿ” Reasons: Covid-19, No New Stimulus Deal, US Election Fears โœ” Jan 2022 - March 2022: -๐Ÿ๐Ÿ‘.๐Ÿ% ๐Ÿ” Reasons: Russia/Ukraine War, Omicron and other Covid-19 variants, Rising Rates, Fed Tightening, and Inflation Fears ๐Ÿ”‘ ๐‘น๐’†๐’‚๐’”๐’๐’๐’” ๐’˜๐’‰๐’š ๐’•๐’‰๐’† ๐’Ž๐’‚๐’“๐’Œ๐’†๐’• ๐’๐’๐’˜ ๐’Š๐’” ๐’”๐’•๐’–๐’„๐’Œ ๐’Š๐’ ๐’•๐’‰๐’Š๐’” ๐’–๐’๐’”๐’•๐’‚๐’ƒ๐’๐’† ๐’”๐’Š๐’•๐’–๐’‚๐’•๐’Š๐’๐’: โ™ฆRussia/Ukraine War โ™ฆ Rising Interest Rates โ™ฆ Fed Tightening โ™ฆ $BTC Crash (Down more than 50% in less than 6 months) โ™ฆ Surging inflation โ™ฆ COVID-19 lockdowns in China โ™ฆ Hawkish Federal Reserve policy โ™ฆ A global economic slowdown โ™ฆ Higher energy ( $OIL ) and food price ๐‘พ๐’‰๐’†๐’ ๐’…๐’ ๐’˜๐’† ๐’†๐’™๐’‘๐’†๐’„๐’• ๐’•๐’ ๐’†๐’™๐’Š๐’• ๐’‡๐’“๐’๐’Ž ๐’•๐’‰๐’† ๐’ƒ๐’†๐’‚๐’“ ๐’Ž๐’‚๐’“๐’Œ๐’†๐’•? The answer to when we get out of this situation can be tricky, and we can safely say that no one has the correct answer for it. But history and past numbers can guide us to what awaits us after the end of this era. Based on historical market data, the S&P 500 has seen an average of gaining around 12%-14% a year after exiting market correction. And for shorter-term time frames, these numbers were also positive. History and numbers have always been a good guide for investors. We can continue to be positive and confident in what has happened in the past. โœ Although the expectations indicate more inflation in the coming months, stocks will be beating bonds in the long term as did in the past, in my opinion. On the other hand, it is better to have a mixed investment plan and make sure entries are not above target price for higher-risk assets like Cryptos and small-cap stocks. Be patient and play the long game! ๐ต๐‘’๐‘ ๐‘ก ๐‘…๐‘’๐‘”๐‘Ž๐‘Ÿ๐‘‘๐‘ , ๐“.๐“— $SPX500 | $NSDQ100 | $DJ30 | $OIL | $BTC *This post is not investment advice. Always do your research before any action. --------------------------------------------------------- ๐Ÿ˜ แดกแด‡ แด„ส€แด๊œฑ๊œฑแด‡แด… แดแด แด‡ส€ 3333 ๊œฐแดสŸสŸแดแดกแด‡ส€๊œฑ! Thanks for your Support and Trust. ๐Ÿ’š Good time to Copy meโ“ During these days is the best time to ๐‘ช๐’๐’‘๐’š ๐’Ž๐’† or ๐‘จ๐’…๐’… ๐’Ž๐’๐’“๐’† ๐’‡๐’–๐’๐’…๐’”. We are still on the road to recovery. I am a long term investor with the post-pandemic approach and strategy. Translate
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