Within a bull market, various phases occur at different times. One of these phases is known as the ageing bull phase. Vaishnavi Chauhan sheds light on what investors should do during such a period.
Investors have been watching with excitement as stocks soar to new heights and the markets hit all-time highs. The Indian markets have experienced a rally like never before, and with the upcoming Union Budget, there's even more for investors to anticipate. However, just as the saying goes that 'nothing is permanent, there's a rumour among investors that the market might be heading toward an ageing bull phase.
What is an Ageing Bull Phase?
First, let's understand what an ageing bull phase means. Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline. Within a bull market, various phases occur at different times. One of these phases is known as the ageing bull phase. An ageing bull market typically refers to a stage filled with excesses, where stocks continue to climb, even though there are warnings to be cautious. In this environment, there is a mix of excitement and nervousness among investors.
Some believe the rally will continue, while others fear that the market may soon reverse course. The sense of excitement comes from watching investments grow, but the nervousness stems from the uncertainty of how long the growth will last. Some investors are optimistic - predicting that the rally will go on while others are more cautious, believing the market might soon decline. The current stock market conditions are showing signs of an ageing or mature bull market. Now in its fourth consecutive year, the bull rally has seen the Sensex and Nifty continue to strengthen, surprising even seasoned investors.
Impact on Equity Markets
هذه القصة مأخوذة من طبعة July 29, 2024 من Dalal Street Investment Journal.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة July 29, 2024 من Dalal Street Investment Journal.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures