The stock market is in a bull market. That’s not really surprising when you look at the numbers. Stocks have been increasing by double digits every year. Some people think the market is oversold and they call it a bubble. Others think it’s just in a correction phase and they say it’s a bull market.
So, who’s right? The answer depends on your criteria for making a call. If you’re short term oriented and focused on price moves, the bull market is clearly oversold. If you’re looking at long-term performance and want to see stocks pay off over the next few years, then the bull market is clearly still in place.
The question many traders are asking is if there are any other types of bull markets out there. Are we seeing an upswing in any other type of market? It certainly seems more unusual that the stock market would be going up for so long. Could it be an economy based bull market?
Economists tend to disagree with bull market analysts. In recent history, we’ve seen some ups and downs in any market, including a few big moves in the housing market. So you can’t say the market is oversold because you’re seeing an upswell in prices because that’s not how things work. When there are a lot of buyers and sellers in a given market, prices usually move downward a little bit before coming back up.
Investors shouldn’t be worried about this at all. In fact, this might be the best time to buy. Don’t buy on speculation or hunches. Buy now because it’s a buyer’s market.
Now, let’s talk about some of the reasons why this bull market is far from over. One of the reasons is easy to see. People love to invest in financial instruments that give them a high degree of safety. When you take the time to analyze financial markets, you’ll notice that they tend to have very high levels of safety. That means that individuals are willing to hold onto these instruments for a longer period of time.
Bull Markets Is Far you look at the current stock prices, you’ll see that a lot of the companies in the S&P 500 have been able to ride out the storm. There’s no evidence whatsoever that the top half of the market is in any danger. At the same time, don’t expect any large moves in the markets anytime soon. They have plenty of time to recover. In fact, many experts believe that the U.S. is still on the rise.
Bull Markets Is Far, the question of course is how do you know when it’s best to sell? This all depends on your risk tolerance and the exact amount of risk you are ready to absorb. The best advice I can give when it comes to this bull market is to diversify. The best stocks to buy right now are those that are both safe and inexpensive.
Here’s why. In a falling market, any investment will look great. However, you will need to be careful of any company whose stock price is falling because it could become bankrupt in a relatively short period of time. That means you run the risk of losing everything you own. Investing in one of the many companies in the lower depths of the market will help protect your portfolio while giving you the opportunity to make some profits as well.
Don’t just look at what the companies have done in the past. Instead, pay attention to the future potential of the companies. For example, some markets are ideal for oil extraction. Other markets may provide a cheaper source of gas.
One way to do this is to invest in a commodity, such as oil or natural gas. Keep in mind that commodity prices will always go up and down. They won’t remain flat, either. If you are bullish on the stock market, these conditions are ideal for making money. When you are bearish, you should probably think about holding cash instead of buying commodities because it will always cost more than cash. Also, it will take longer to recoup your losses if you sell commodity stocks.
If you are still invested in the market and it looks like it will go down any day, you can buy more bonds and invest that money in whatever you think will perform best. It is possible that oil will fall, but you can buy bonds that are denominated in US dollars.