What does bear market stock mean?

A bear market is also called a short market, which refers to several securities markets that have shown a long-term downward trend. Stocks in a bear market basically continue to fall, and the obvious feature is that they fall sharply and rise slightly. So what does bear market stock mean? Let’s find out together below.

What does bear market stock mean?

Bear market stocks refer to stocks in a bear market. These stocks basically fall more than they rise. Most of the final results for investors who hold shares are losses. Investing in a bear market requires precise risks in many aspects. Don't buy the bottom randomly or blindly. In a bear market, the stock price is always a bottomless pit, so if you want to buy the bottom, you will basically be trapped.

Under normal circumstances, after a stock drops more than 20% from its high point, it can basically be said to be a bear market stock. In a bear market, investors have a high probability of losing money, so this time can also be said to be a market in which investors lose a lot of money and the degree of loss is large. When the stock market is in a bear market, it is recommended that most investors wait and see with short positions, or add positions to avoid increasing losses.

Which stocks rise in the bear market?

The trend of stocks is unpredictable. It is very difficult to judge which stocks will rise in a bear market. Bear market stocks basically fall more, and only a few stocks will be in the rising stage. In a bear market, some market blue chip stocks, stocks with relatively good performance, relatively good company operations, stable cash flow of enterprises, stable industries, and stable consumer stocks that are not affected by raw materials may rise.

Secondly, there are some stocks with stable performance growth, good company conditions, and good financial conditions of the company that may also rise. However, when buying stocks, it is still recommended not to operate with a full position, but to cover the position at a low level. Investment, which can better diversify investment risks and reduce investment costs.

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