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2022 Half-Year Recap: Winning streak or zero-sum in your performance?
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Rebound Talk: a sign of rally or a slope of hope?

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Moomoo Learn joined discussion · Jul 22, 2022 04:50
Where we are now in the 5 stages of bear-market grief?

The market has seen an uptrend since last week after a prolonged decline this year.
Rebound Talk: a sign of rally or a slope of hope?
The short-term but complete recovery has sparked debate among investors about whether and when it's time to buy the dip.
The bottom-fishing phenomenon is more likely a "slope of hope" which is pretty typical in a bear market.
That doesn't mean U.S. stocks can't stage an impressive rally from current levels.If it does, it is viewed as countertrend in nature within the context of a bear market move.
In a bear market, investors' psychology tends to follow a process similar to what psychologists call the five stages of grief -- denial, anger, bargaining, depression and acceptance, according to analysts.
What does this mean and how can you use them to your investment advantage?
Here's how they manifest in the stock market:
Denial–At this initial stage, the market generally sees any decline as nothing more than a buying opportunity.
Remorse– As the market's pullback becomes too severe, investors' mood eventually morphs into anger.
Bargaining– This stage, investors redirect their energies to figuring out if they can maintain their lifestyles despite the hit to their portfolios, trying best to cut unnecessary expense.
Depression– As the market continues to slide, cutting some expense will not be enough. Significant lifestyle changes will be required.
Acceptance–In this final stage, investors throw in the towel. They surrender to the bear market and stop fantasizing about when it might end. They treat any sign of market strength as a suckers' rally.
Some investors believe we're no further throughthis five-stage cycle than the third one, although not all investors progress at the same pace.


What are your bear market trading strategies?Please leave your opinions.
Rebound Talk: a sign of rally or a slope of hope?
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