Just wanted to know what is your views on the market and its future trend possibility.
Do you guys think that this is just a major price correction and the market will start to move up sooner or later in a few weeks ? Or you fear that the bullish momentum has ended and a bearish market is upcoming for a longer period?
My view: The market since 2020(since the corona virus time) has been highly up-trending and especially in 2021, and its arguable that a stock market bubble has been created: share prices out of proportion to their companies’ fundamental value and incase of bubbles like this, even small things can burst the bubble (think about it like this : people are overvaluing the stocks way much more, so in events of even small bad news people start to fear the price will go down less and will start to panic sell at around the available price in the market to minimize losses/book profit and other people will further follow this leading to rapid decreases in price).
Few examples of bubble markets:
1).The great crash 1929
similar to what NEPSE is going through
– prices of stocks astronomically high compared to their intrinsic value.
– more speculation than investing.
-regulatory authority warnings.
-rising stock prices despite low economic growth.
All bad signs of an unhealthy bullish market(bubble market).That crash happened because of the administrative warning. See it [here](https://i.imgur.com/8Kab7hu.jpg)
2).. Elon musks tweet crashing bitcoin. The tweet musk made about Tesle not accepting bitcoin crashed the bitcoin bubble market as we all know it( a single mans tweet crashes the whole market). You can see it [Here](https://i.imgur.com/hGqMjze.jpg)(for the main tweet) or here for other tweets and its impacts [here](https://i.imgur.com/lQUHZNt.jpg) .
So to sum up,i believe that market will further go down(I might be wrong and certainly hope I am).Obviously, the market in a long long run will never go down with increasing economy but i fear that a bearish market might be around for a few weeks to months before we see bullish market again.
I am interested to know what is all of yours views on it. Thanks