Bear Market and Its Major Indicators
No doubt initially the high dividends linked with this market lure the investors but its role in the world is wider.
It also indicates the economic condition of the world as a whole via its trends.
It reveals the cyclical trends of booms and recession visiting the economy and so acts as a great guide to the business world.
This market also shows an upward trend and a downward trend depending upon the situation prevailing in the economy of a country or world.
These trends are respectively called bull and bear market.
When the earnings from stocks decline, it shows the prevalence of bear market.
Besides this the lower price level, persistent high volumes also are the indicators of bear market.
Since bear market reflects a downward trend, so it resists the people to invest during this trend.
But this decision is not right as the it is very much likely that the prices of the shares which are falling would rise in near future and so you can reap a profit even by buying shares in bear market.
Rather at this time you are buying shares at lower prices and so money invested has gone down and when the market recovers to normalcy in near future, you would be incurring high dividends.
So certainly bear market is not a grim situation as their market is highly fluctuating and unpredictable.
But yes to the brokers this market is predictable to a great extent and that's why their valuable advice is sought by every investor.
He also enjoys a prominent position in the stock market as he has full knowledge of the market trends.
He acts as a wonderful guide for the investors as his advice places the money of the investors in safer mode.
So they can relax and enjoy the high dividends for a due course of time.
He also removes the fears of investors linked with the investment during bear market.
Since he has a sound practical knowledge about the market trends, so he explains them the implication of bear market to remove all the confusions and fears.
Also he is a mediator between the companies and investors and so his advice is on practical grounds.
He is aware of the present and also future expected value of the shares of various companies.
And he restores the lost confidence of the investors in the market during this trend.
You can fully rely on the advice of the broker during this situation also and invest your money with free mind.
Really the brokers have a very important role in the stock market which cannot be denied at any cost.
So the prevalence of bear market would not prevent you to invest as your doubts and fears linked with it get removed via broker's advice.