A History of Bear Markets
May 21, 2019
Although the US stock market skyrocketed when 2019 kicked off, the rally's liquidation ended up raising a red flag for investors alerting them that the future of the bull market was at stake - The longest run for the bull market that almost lasted for about 10 years was to result in a barren field i.e. bear market at last.
And because it has been years since the last bear market took place, all the investors involved in Cryptocurrency Exchanges have almost disregarded their past experiences with one. As for the relatively younger investors, it seems unlikely that they will ever learn how to cope up with this stigmatic surprise.
The Bear Market
When investors are involved in the crypto market, often questions will be raised where they wonder when the next bear market will come about. Of course, economic recessions are a huge hint but research successfully shows that they are not the only factor for this as bear markets have long come in all types, shapes and sizes.
Reports indicate that since 1926, almost 8 bear markets have come and gone where the duration of each lasted anywhere from 6 months to a gigantic period of 3 years.
In modern times, crypto analysts are split between the fluctuating dispositions of the bear markets and are unsure about what to expect from the next one to come. Although, few of them claim that the next bear market may possibly only last upto 6 months, others are equipping themselves for a catastrophic crypto market trounce.
A Bear Market Free From Relapses
Undoubtedly, a bear market devoid of recessional periods seems like an unprecedented development that does not sit down well in the books of crypto's history. However, till date, out of the 8 recorded bear markets, almost three of them are stated to not being instigated by the reason of economic recession for their downfalls.
The three bear markets that are being discussed observed concise shrinkage in S&P 500 with almost 21.8% in the later part of the 1940s and around 22.3% in the much earlier time of the 1960s. An example of this is the stock market crash that happened sometime in 1987, where the value fall only lasted for about 3 months as reported by First Trust. Apart from that there's always been much speculation if the major reasons of bear markets have been equity valuations that have accented selling practices during a crypto recession.
As an eager crypto investor, you must always ensure to stay mobilized with handy Tips To Get Successful Survival In A Bear Market.
The Future of Bear Markets
Crypto has taken over the world by such a surprising storm, that the stock prices and equitable economy generated by Online Bitcoin Exchanges can flip anytime - Judicious investors are advised to prepare in case the worst arrives i.e. major market slump.
Investors who are hoping to gain a quick palpable buck by short-term crypto investment or even long-term ones for that matter should think about rigid portfolio gyration schemes that involves cash supercharging and post its successful completion trying the same with bonds as well as other assets.
In the meantime, the other stock investors who are willing to battle the market recession periods should firstly analyze if they are both financially and emotionally sorted to bear the excessive challenges of a bear market.