What are the T&C to Invest in during a Bear Market-Market Crash

1. What are the T&C to Invest in during a Bear Market/Market Crash? Investing in stocks and bonds during a long bull market is simple enough. It is a little more challenging when everything is going downhill and inflation is at a record high. In the 25 years since foreign investors began actively investing in the Indian market, Indian stocks have gone through four bearish trends. The first of these four bear markets was the Russian debt collapse in 1998. During that time, Sensex fell by approximately 30% in value. The second bear market was when the tech bubble burst in 2000-01, and Sensex fell by approximately 43%. The third event was the global financial crisis of 2008-09, during which the stock market was one of the poorest performers in the world. During this phase, Sensex fell by around 52%. Lastly, we had the Covid-led pandemic-related sell-off just last year, which was the latest bearish trend in the Indian stock market. However, investing activities in the stock markets across the globe continued. For this, the investors restructured their investing

2. strategies and kept certain terms and conditions that come along with the bearish trend. To understand this in greater detail, let us first look at what a bear market is and how it is created. What is a bear market? When a stock market index falls by 20% or more from its recent high, then the market is considered to have entered a bearish phase. You can also consider the onset of a bear market when any single stock plummets 20% or more from its recent highs. A bear market is characterised by falling returns, a negative market mood, and increased stock sell-offs. It can be triggered by a variety of factors, such as a poor or faltering economy, wars, bursting market bubbles, geopolitical crises, and significant economic shifts. It has been observed that the quicker an index enters a bear market, the shallower the bear market tends to be. An important thing to consider is that a bearish phase must not be confused with a period of market correction. For instance, in the present day scenario, with many factors plaguing stocks worldwide, such as the Russia-Ukraine conflict and rising inflation, major global indices such as the Nasdaq have seen a bearish trend. But the Indian exchanges have not seen this extremity yet, and Nifty is facing only market correction as of now. Read more bout bear market and market crash