Connect with us

INVESTING

Managing A Bullish Market

Amadeus Technologies Launches Investment and Insights Tool Based on Machine Learning and Strategy Algorithms

By Ewan Rosie, Head of Advice, Cooper Parry Wealth.

COVID 19 has transformed the way businesses work with their customers and their employees. And with this evolution has come a rise of new terms in the media – ‘new normal’, ‘shielding’ and so on. In the finance industry there’s enough jargon to last a lifetime and it can be hard to truly understand what’s going on.

Cooper Parry Wealth has been advising clients during these uncertain times in a way that is easy to digest and simply explains the facts – without the media noise!

Two of these terms are ‘bear’ and ‘bull markets’ – what do they really mean?

The terms ‘bear-market’ and ‘bull-market’ have begun to see a rise in visibility across the media due to the volatile performance of global stock markets. Whilst there’s no strict definition of the phrases, they’ve generally come to be known as:

  • Bear Market – When Prices are Falling: Stock Market Reduction of 20% or more. 
  • Bull Market – When Prices are Rising: Stock Market Increase of 20% or more.

Markets through the years

Vanguard recently released a chart, showing the UK stock market (FTSE All Share TR Index) over the last one hundred years and how many times it has changed from a bear to a bull market, and vice versa.

The graph shows that there are 103 bull market years, compared to 16 bear market years, with the highest being the eleven year period to October 1987, with 1,675% of growth.

This makes the outlook feel a lot less bleak! Of course, there will still be regional differences that will also depend on how certain countries are trying to help businesses through the COVID-19 pandemic. For instance, when it first broke out in January in China, the MSCI China Index saw a fall of just 18%, not entering a bear market and in the US, the S&P 500 Index has recovered strongly from its March low.

Where do we go from here?

The truth is that no-one can predict where markets are going to go in the short-term. But history tells us that we have always recovered from our most challenging times and you need to be invested at this point to fully benefit.

A well structured investment portfolio should be globally diversified to help you weather the storm of bear markets and this helps an investor behaviourally as it allows them to feel comfortable with the returns received, so they can keep their discipline and capture the recovery as and when it happens.

As things stand, we don’t know what the full impact of COVID-19 on the economy, or the world will be! But individuals and businesses are adapting and finding new ways to achieve their goals. Yes, there may be bumps in the road, but there always is on a short-term view. Keep a longer-term mindset, with strong discipline and investors will get their rewards.

Continue Reading

Recent Posts

The lockdown money revolution 29 The lockdown money revolution 30
FINANCE5 days ago

The lockdown money revolution

By Granville Turner, Director at Turner Little. Many Brits have found that lockdown has been beneficial for their money, having...

Self-employed taxpayers and Making Tax Digital 31 Self-employed taxpayers and Making Tax Digital 32
BUSINESS5 days ago

Self-employed taxpayers and Making Tax Digital

By John Hemming, CEO of Cirrostratus Exedra, the company that runs the VAT Direct Making Tax Digital Service The HMRC’s ambition...

Auditor regulation and litigation - down to the Wire(card)? 33 Auditor regulation and litigation - down to the Wire(card)? 34
BANKING6 days ago

Auditor regulation and litigation – down to the Wire(card)?

By Tom Snelling, partner at Signature Litigation and David Entwistle, a regulatory lawyer and legal risk specialist Introduction The collapse...

Why it’s time to adapt to the virtual world: how to master online negotiations 35 Why it’s time to adapt to the virtual world: how to master online negotiations 36
TECHNOLOGY6 days ago

Why it’s time to adapt to the virtual world: how to master online negotiations

By Tony Hughes, CEO at Huthwaite International, a leading global provider of sales, negotiation and communication skills development Virtual negotiations...

Protecting against man in the middle attacks with dynamic linking 37 Protecting against man in the middle attacks with dynamic linking 38
FINANCE2 weeks ago

Protecting against man in the middle attacks with dynamic linking

By David Vergara, Senior Director of Product Marketing at OneSpan In recent years, the booming growth of mobile applications has...

The Case for Banks to Digitally Transform: Iterating out of lockdown 39 The Case for Banks to Digitally Transform: Iterating out of lockdown 40
BANKING2 weeks ago

The Case for Banks to Digitally Transform: Iterating out of lockdown

By Sudeepto Mukherjee, Senior VP, Banking EMEA & APAC, Publicis Sapient. Before COVID-19 disrupted every imaginable part of society, banks...

Difficulties of Getting on the Property Ladder Post-Pandemic 41 Difficulties of Getting on the Property Ladder Post-Pandemic 42
LIFESTYLE2 weeks ago

Difficulties of Getting on the Property Ladder Post-Pandemic

There is a lot of talk about what’s going to happen to the housing market over the next few months....

Russian Doll: Building digital capabilities into a bank’s core 43 Russian Doll: Building digital capabilities into a bank’s core 44
BANKING2 weeks ago

Russian Doll: Building digital capabilities into a bank’s core

By Ian Johnson, Managing Director of Europe, Marqeta COVID-19 has left its mark on every industry, and banking is no...

How the US and Europe's COVID-19 Responses Have Affected Exchange Rates 45 How the US and Europe's COVID-19 Responses Have Affected Exchange Rates 46
TRADING2 weeks ago

How the US and Europe’s COVID-19 Responses Have Affected Exchange Rates

In living memory, few events have thrown the reputations of different countries and regions under such intense scrutiny as the...

Recognising the surprise PE investment potential in southern Africa 47 Recognising the surprise PE investment potential in southern Africa 48
INVESTING2 weeks ago

Recognising the surprise PE investment potential in southern Africa

By Martin Soderberg, partner at SPEAR Capital. An event of historic significance passed largely unnoticed in the world’s media recently,...

Why Banking is experiencing a second wave of transformation 49 Why Banking is experiencing a second wave of transformation 50
BANKING2 weeks ago

Why Banking is experiencing a second wave of transformation

By Keith Pearson, Head of Financial Services EMEA, ServiceNow The financial landscape has seen significant changes in the last six...

Making your mark: an introduction to trademarks 51 Making your mark: an introduction to trademarks 52
TRADING2 weeks ago

Making your mark: an introduction to trademarks

By James Turner, Director at  Turner Little  Are you looking to protect your brand? The chances are, you are –...