Posts tagged with "bear-market"


  • Retiring In A Bear Market

    I already wrote a bunch of posts about 4% rule on my blog. Most recently I explained how early retirement might work during a prolonged recession. You have also seen how 4% rule is working out for me. Then there is that topic about whether 4% rule actually works in India given the high inflation, which we found out might actually work better in India. But then why should we stop the discussion there? Let us talk about retiring in a bear market. Actually I am not going to do any analysis, but will just point you to an interesting article I read recently.

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  • Correction, Bear or Recession?

    We are going through some exciting times in equity market. It has been dropping for the past few weeks and media has opened up the discussion of possible recession. I say, we are no where near recession yet. I might agree to the fact that this is near the start of a bear market. Any drop in the market you have been experiencing in the past few weeks or even months is just a correction at best. Of course there are no proper definitions for each of the terms – correction, bear and recession, but there are some generally accepted ones. So we just need to check the definitions and see where we are in the market cycle.

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  • The Market Scare

    There is a lot of talk about how markets are crumbling all over the world. I have no idea what they are talking about. We barely corrected 10% from the peak if you take Sensex into account. That is a normal drop one would expect from the markets in any given year. I don’t understand what the excitement is all about. A 10% drop is peanuts in my opinion. But more importantly why would one look at the drop from the recent peak? Isn’t investing in equity all about the long term view? What happened then? These very same people don’t seem to be too concerned when the markets were moving up by 20-30% in a short duration. All this confuses me quite a bit.

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  • Sensex and Nifty Down by 30%

    At close today, both Sensex and Nifty are down by 30%. We are officially in bear territory. It is considered a bear market if the market has fallen more than 20% from the recent highs and the investor sentiment is negative. Some market pundits are predicting that there is going to be a recession worse than the 2008 crisis. I have no idea if that will happen, but I am not worried at all. Also I cannot predict market, so I can't even tell if they are correct or not. But I have a plan.

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