Fear has started mounting again among investors as the stock market index the S&P 500 has entered into Bear Market.
Bear Market means that index has crashed more than 20% from its recent high which was made in January.
Now since it has fallen more than 20%, so it is advised to trade cautiously.
There is high possibility that it will go down further.
Small investor tends to invest when a particular stock is crashed.
But this may be very risk for them if they do not how to hedge the stocks
When stock market enters into Bear Market, it becomes highly responsive for negative news.
Even a slightest negative sentiment can bring huge swing in the stock market.
Though this is not happening for the first time for S&P 500 index, and it has recovered from lows very smartly.
But if this downtrend continues for longer time then
It is speculated that we may enter in recession in 2023 says Matthew Luzzetti, the chief U.S. economist at Deutsche Bank.
The S&P 500 index is very important parameter as it keeps record of 500 stocks of mostly the largest U.S. companies.
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