What is a bear market?

Anyone who invested in stocks in mid-1929 in US and held onto them would have to wait for almost his entire life before getting back to even.

Most people have only seen bull markets in the last 30-40 years and hence the bullish bias in analysts.

A prolonged bear market can be brutal and destroy a person's lifetime of investments. Today nobody can say with 100% certainty whether the current rally is a new bull amrket or a bear market rally. The nifty can be testing 2200 soon or could be touching 7000 also. We should be ready for either scenario.


All asset allocation decisions should include a strategy to profit fom falling markets.