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[ RECOVERY SIGNS ]
Sam Shaw reveals the signs that
typically herald the end of a bear market
Green shoots
W
ith the FTSE All World
dropping more than 30 per
cent between February and
March, assertions that the
coronavirus-related falls have plunged
investors into bear market territory are clear
as day. But how clear are the signs things
will start looking up and to which indicators
should investors attach the most credence?
Bellwether
During the nadir of the global financial
crisis, all eyes were on the S&P 500, swiftly
followed by the bellwether of US car sales.
Generally, when conditions start to feel “less
bad”, it is probably time to exhale. Flatter
trading levels, as opposed to sharp upticks,
are typically more reliable indicators that
the worst is over, according to Russ Mould,
investment director at AJ Bell.
“You can look at share prices over six or
nine months and think things are picking up,
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