Cyclical bear market may be referred to as a short phase of a bear market, which may take place within a secular bear market. The article below furnishes details about certain aspects of the markets and certain anticipations of the experts and the investors.
Experts are of the opinion that past records suggest that in the event when the stocks are subjected to a bear market, it becomes very uncertain as to the duration for, which it will last. It was anticipated during the period 1999 to 2000 that a secular high pertaining to equity valuations may result.
It was also fathomed that the PE s, which manifested a downward trend, could withstand the upheavals of the stock market. It has been observed that since the year 2000, the PE ‘s pertaining to Internet and Techs have been very high. This also keeps one thinking whether the current phase is a cyclical bear market or a secular bear market. This may also be regarded as a leg 2 pertaining to secular bear market.
The main concern, the investors are expressing is whether the prevailing bear market will give rise to secular lows , which would be more severe than the lows pertaining to Euro manifested in the year 2002.
If the secular lows manifested do not show the same readings, the stock market would see several forces in making the bear market more substantial as compared to the cyclical bear market, which comes from run-of-the-mill .