The last few years have introduced a lot of uncertainty and volatility to the global stock market, with bear markets causing losses for many traders and investors. As we enter the summer of 2022, the situation is still dynamic and difficult to handle. Is now a good time to invest? How will the situation develop? Let’s see what the experts think.
How was the market in 2022 so far?
Investors already saw a difficult start of the year in 2022. While the stock market brought many opportunities to traders in 2021, we’ve reached a bear market again in 2022, with major indices like S&P 500 tanking back to 2020 prices. According to Forbes, there haven’t been many good other options for investors as well – with cryptocurrencies plummeting and even gold falling in value.
With further drops across global stock markets, we’ve definitely entered a bear market – what does it mean for investors?
What is a Bear Market?
In a bull market, the leading opinion is that prices will be rising over the foreseeable future. A bear market is the opposite of that – the prices are expected to be dropping, making investing tricky and uncertain. As we’ve entered a bear market, many investors using traditional stock trading methods might be left without many opportunities. You can find more information here about bull and bear markets.
There are, however, alternative financial instruments that allow traders to continue making profits even in a bear market. Short selling, also known as shorting, is one of such instruments, allowing traders to borrow and sell stock from a broker at the market price, wait for the stock’s price to fall down, and then buy the stock again, returning what’s owed to the broker, and keeping the profits.
How to keep track of sentiments on the stock market?
Market sentiments tell traders the overall attitude of other investors towards a given stock (or the stock market as a whole). Using a variety of technical indicators, traders can make out sentiments that help them adjust their long-term investment strategy.
Tools like StockGeist.ai help traders monitor market sentiments, gathering massive amounts of data from the internet and analyzing it using AI-driven deep learning solutions. These tools keep track of thousands of companies’ social media posts and news updates, measuring the sentiments in real time and helping traders choose where to allocate their funds.
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