Bull and bear markets are two different trends that the market expects. A bull market is a term for anticipating a bullish outlook and an optimistic outlook, and a bear market is a term for anticipating a bearish outlook and a pessimistic outlook.
A bull market is a market with high investor confidence. In a bull market, ** continues to climb, trading activity increases, and the market atmosphere is optimistic. This kind of ** is often accompanied by positive factors such as economic growth and good corporate profits, and investors generally believe that the market prospects are promising, and they have bought and held**. A bull market is usually accompanied by a high stock price, a large trading volume, and the continuation of an uptrend in the market.
A bear market is a market with low investor confidence. In a bear market, there is a general trend, trading activity decreases, and the market atmosphere is pessimistic. This kind of ** is usually accompanied by unfavorable factors such as economic recession and declining corporate earnings, and investors are generally cautious about the market outlook and have sold ** or waited and watched.
The transition between bull and bear markets is often associated with cyclical fluctuations in the market, which can vary in duration. Generally speaking, in a bull market, investors can get better returns by ***, while in a bear market, investors will lose money, so appropriate risk management strategies should be adopted. At the same time, both bull and bear markets are part of the laws of market operation.
China and India are both emerging countries and the world's most populous countries, but the development of the two countries' most advanced markets is completely different. As we all know, China has been in a bear market of ups and downs for a long time, and the index has hovered at 3,000 points for more than ten years.
After the financial crisis in 2008, the Indian stock index soared from 7,697 points to 71,127 points today, an increase of nearly 10 times.
India** introduced a registration system in 1992, but the process has not been smooth sailing, and there have been several years of bear markets. After the registration system, India ** from 6593 o'clock quickly ** to 454658 points, then fell back to around 2000 points, until 2003, India** came out of a 5-year bull market**, and the stock index came to 7697 points.
Since 2008, India has walked out of an unprecedented bull market, which has directly pushed the stock index up 10 times, and the index has reached 71,127 points. On the other hand, China**, although it has a history of 33 years of development, has been decadent and sluggish in the context of China's rapid economic development in recent decades, like a snail, curled up at 3,000 points for a long time, which is completely contrary to the entire macroeconomic development.
Not only that, A-shares have also caused many domestic and foreign investors to suffer heavy losses, and its strange performance has become a unique branch in the world, and has been crowned by foreign capital as the "fraud market".
Why is India able to get out of the bull long bear short **?The reasons for this come from the following aspects:
First, the fundamentals of India's rapid economic growth have laid a solid foundation for the worldPlinth.
Since the 90s of the last century, India has implemented economic reform policies, gradually opened up the market, attracted foreign investment, and injected vitality into India's economic development, thus enabling India's economy to achieve an average annual GDP growth rate of about 6%. The high growth of India's economy has provided more business opportunities and investment opportunities for foreign capital, attracted a large amount of financial capital into India**, and prompted many multinational giants to invest and build factories in India.
In 2021 under the epidemic, India's economic growth rate reached 87%, surpassing China, becoming the world's fastest-growing major economy. In 2022, under the pressure of the global economic slowdown, India still achieved 68% GDP growth.
According to the Reserve Bank of India**, India's economy will grow by 65%, which means that the Indian economy is entering a period of rapid growth, and the future development prospects are promising.
Second, a series of economic reform policies implemented by India have created objective conditions for the bullishness
In recent years, with the rapid growth of India's economy, the number of middle-income groups has also increased, and they have provided strong support for promoting development and expanding consumption. This is illustrated by the persistence of the consumer sector in India and the fact that it has become the target of investors.
In addition, India is one of the world's largest consumer markets, and the boom in the jewelry industry has also boosted the Indian index.
Third, India's ** trading system is more conducive to protecting the majority of small and medium-sized investors
India's ** trading system is T+3, T+0, with a 10% ** rise and fall limit, and there is a short-selling mechanism. India attaches great importance to the protection of the legitimate rights and interests of investors, and the trading mechanism is: institutional T+3, individual investors T+0, which means that the entry and exit of institutions is more flexible.
Because the information is far less than that of the institution, if the risk occurs, the institution will take the lead in running away and taking advantage of the poor information, which is equivalent to cutting the leek of the institution. It can be seen that India's trading system is obviously more conducive to the protection of ordinary investors. Compared with the 33-year unchanged T+1 of A-shares, India's ** trading system can show its superiority even more.
In addition, T+0 is more suitable for ** trading, and T+3 is more suitable for long-term holding, which forces institutional investors to take the road of value investment and hold shares for a long time. Facts have proved that it is this advanced trading system that has increased the enthusiasm of India to buy and strengthened their confidence in it. It is also under the effective guarantee of this trading mechanism that India** can form a 20-year bull market.
On the other hand, due to the fact that the T+0 trading system has been implemented for decades, under the influence of this trading system, due to worry, the majority of ** has developed the habit of chasing up and down, fast in and out. As soon as there is a stir, everyone chooses to sell or ***, which increases the volatility of the market. It can be seen that Chinese shareholders are indeed "** votes".
In India, due to the guarantee of the T+0 system, it not only improves the enthusiasm of India's **buying**, but also enhances their confidence in **. On this basis, ** is more willing to hold shares for a long time, so the turnover rate of India ** is much lower than that of China. In fact, it is under the effective guarantee of this trading mechanism that India's ** can form a big bull market that has lasted for more than ten years.
Fourth, India's inclusiveness, marketization, internationalization rate and degree of internationalization are higher than those of A-shares
Compared with A-shares, India** is obviously more inclusive, market-oriented, more inclusive and more internationalized, which is why India** has attracted more and more foreign investors and institutions to enter. In recent years, the increasing openness of the Indian economy and the reduction of inflation have also provided good investment conditions for foreign investors.
Not only that, India** has also actively promoted financial market reforms and improved regulatory systems, which has increased investors' confidence in India** and increased their sense of security in investment. Because India has formed a good investment ecology, it can attract the continuous influx of foreign capital and provide a steady stream of incremental funds for India.
In short, why is India seen by foreign investors as a possible replacement for China and the new "factory of the world"?In recent years, India's rapid economic development has become the fifth largest economy in the world, which fully shows that India's current reform and opening up policy and the economic development path it has chosen are correct.
Despite the differences between China and India, India is inferior to China in many places. But in terms of ** alone, India's ** development is far better than China's, and in this regard, India has set an example for China, which is worth learning from China's serious study. If the management continues to maintain the status quo, it will be inferior to others and will not learn from others. Then the situation of short bulls and long bears in A-shares can never be fundamentally changed!