When it comes to shares, the market gets affected by the smallest of the things. But currently, the biggest problem is gripping the world as one of the major health crisis, and it is showing on the stocks and markets easily. Stock prices are falling, and the industries are getting affected severely. However, there are also many stocks which are not showing complete falls. In the last week, few of the options are showing a bounce like the S&P (SPY). According to the spy stock news at https://www.webull.com/quote/nysearca-spy , last week, there was an increase of 9.4%. However, the questions remain that should one expect a rising market from now on or should one choose to sell because the chances of falling prices are inevitable.
Bull market scenario
The current bear market closed around 2237 for SPY on Monday, and the average fall was 34%. Also, there is a chance that the world, especially South Korea and China, will come out of the coronavirus crisis, and this will show a good sign in the stocks. Also, there is the case of plummeting bond rates, and thus the cash is paying nothing. Also, the government will try its best to scavenge the situation and avoid a financial crisis. All this makes a good scene depicting that the chances of a bull market are high, and there might a good sign after all.
Brea market scenario
Let’s say that the above factors can be refuted; then,it will become a possibility of why a bear market is a possible scene. In the last few weeks, the economy is shutting down gradually, and this has led to a major downfall of the market and stocks. So like mentioned about that the bear market fell 34 percent, what if the depth of the bear market is far deep. Then it can be seen according to spy stock news or other stock news like Nasdaq nyny at https://www.webull.com/quote/nasdaq-nyny ; it still has a long way to go and to look at the economic condition; it is a believable condition.
Usually,a bear market can last up to 12 to 13 months and recession comes paired with it. Here hardly a month has passed, and still, the economic damage and job loss cannot be gauged and gathered yet. So it can be said that bear market bottom is still a long way into 13 months.
In this condition, hedging can be good, which will have a good combination of stocks and ETFs. Not only will it be safe, but it will also be profitable. Spy stocks will keep plummeting if possible, but only a proper portfolio can save the day.