Will the coming stock market downturn be sudden or gradual?

Question

Will the coming stock market downturn be sudden or gradual?

Answer 1

Generally speaking the markets move down faster then they go up.

Anything beyond that and predicting the future - I will need to refer my crystal ball.

Answer 2

How is it you know that there is a coming market downturn? No one knows that and no one knows whether it will be sudden, gradual or instead a market rally. Be careful about thinking someone you are listening to knows all. Experience will teach you that the way to make money in stocks, is to do your homework. Identify well run companies with low or reasonable debt levels with strong and growing profitability and cash flow in growing sectors of the market, buy some, and add money on dips. Take some profits off the table from time to time so you have cash to again buy dips. You can also try trading cyclical companies like natural resources stocks but this is much more risky. Key to it all is the direction of interest rates. Typically rising rates mean falling stock prices, but rates are now so low that they could rise a fair amount before hurting the stock market much. As long as I can find quality stocks trading at low valuations relative to their reliable growth rates, I am a buyer. Right now, AFL, IBM, HPQ, MET, COCO are a few such names. Good luck.

Answer 3

You can't be sure there will even be a downturn.



If there was one it would likely be gradual. There's nothing that can surprise this market right now. Valuations are still low b/c the economy is in the toilet for many reasons.

Answer 4

good question.



typically the follow-up correction to a crash is pretty sudden. But, accurately predicting the stock market is nearly impossible, so you never know.