Jul 13, 2017

When is the end of this Bull Market?

When is this Bull market going to end? The question and answers are floating around.
We are near to 10,000 mark at Nifty. Many market experts think it can reach to 10,000 before bear market or major correction. But we all know market does not follow any mark. It can come any time without informing us. But it all depends on valuation and money flow etc.

An article on Economic Times mention few details about Bull and Bear market which read tasty.

The BEER (bond-equity earnings yield ratio) thus stands at 1.5. Since bond yields are seen as risk-free, a BEER value above 1 signals rich stock valuations, which means the market is already in the risky zone.

A strong bull run is generally followed by a flurry of IPOs.

High retail participation is often a signal of an impending correction in stocks. These investors represent “the last bear on the Street.

A typical bull market is known to have three phases: accumulation phase, that marks the end of a downtrend and informed investors start lapping up shares at cheaper prices; the public participation phase, when risk appetite develops among the general public and retail investors throng the market; and the excess phase, when the bullish sentiment turns into exuberance; informed investors being to bail out.