Bear market patterns: What investors should know about trend reversal

Stock markets will turn, even with all the economic news still being negative, except in two scenarios

Illustration: Ajay Mohanty

Illustration: Ajay Mohanty

Akash Prakash
In the midst of a bear market, which we are undoubtedly in today with every asset class except commodities in the red, it is common for the sell-side commentary to become ultra-bearish. This is exactly what is happening globally. All the mistakes made in the prior bull cycle are now cruelly exposed.

Whether it be on valuations, absolute growth estimates or sustainability of growth, many investors are looking foolish at the moment. How could you have bought XYZ company at a price/sales ratio of 40? How could you have assumed that digital penetration in ABC sector would continue growing at 35-40
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Oct 24 2022 | 7:10 PM IST

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