Stock Market Is In Bull Run After Covid-19 Pandemic
It’s time to invest heavily
I know, the scary month of march 2020. In a single month, all stock markets went down by 40 per cent. There was fear in the market. It was starting of a bear phase in the market. Many hedge fund managers sold stocks and investors lost their money. Market crashes aren’t new to the world, but this one was special.
2020 market crash taught me great lessons like,
- A market crash isn’t permanent. Market recover as time pass.
- You’ll get fundamentally good stocks at low prices.
- You find good investment opportunities in the bear market.
- Buy when others are selling you must buy, and sell when others are buying.
I’m following a stock market for 5 years. In recent months, the market is in a bull run. Companies are making new highs. when you open a financial newspaper or watch a news channel, you’ll see experts are bragging about the market crash. But, the stocks market don’t work on news or sentiments. Many factors like liquidity, new investors participation, the bullish environment help the stock market to show an upward trend.
Liquidity in the market is increasing day by day
After the covid-19 pandemic, many businesses showed negative growth. Governments in the world are printing more money to get out of recession. American government released stimulus package amid covid-19 crisis. It will impact the global economy. You’ll see more money flowing into the economy.
Liquidity helps to increase market activities, which increase cash flow in the market. Promoters invest extra money in the stock market, which leads to stock price increment. Liquidity is directly proportional to bullish trends in the market. Investors get high returns during this period.
New investors are coming into the market
Many of my friends have joined the stock market during the lockdown. They are here to make some extra cash. After lockdown, many people lost their jobs. They invested in stocks as an investment opportunity. During a pandemic, the stock market gave higher returns, which lured many…
