The Bulls and Bears: The Latest Sentiment from Legendary Analysts

Investors have been scrambling to keep up with the perplexities of the stock market in the first quarter of the new year. Within the first weeks of 2021, Redditors have managed to surge GameStop stocks, allowing hedge funders, day traders, and novice traders to receive a piece of the winnings. With the novel coronavirus yet to be detained, property values deterring, the Federal Reserve lowering interest rates, and stock markets being in an unforeseen market bubble – even the most well-established investors are left confused.

Bulls and Bears, what you should know.

The stock market is a complex world, and a simple mistake can have a rippling effect, the smallest jump or plunge in some of the world’s leading economies can immediately be felt on the other side of the world. The Bulls and Bears of the stock and trading market are those foreseeing, or at least speculating, what the market will do and how it will affect traders, investors, small businesses, corporations, and even global economics.

Bull Markets

Bull markets are filled with energetic bull traders, seeking to trade and invest money. When bulls enter the market, professional traders and investors grow more confident, market shares grow, Forex trading becomes tremendously lucrative and leads to rising prices and stocks in various markets.

Bear Markets

Bear traders seek stocks and investment opportunities that will still offer them lucrative outcomes even after the peak has been reached. In some sense, in bear markets, traders and investors have lowered confidence in the global financial market, in localized stock markets and currencies such as the Canadian dollar, Australian dollar, New Zealand Dollar seem to decline in value. The US dollar, Japanese yen, and Swiss Franc have become safe haven currencies during bearish markets.

What are the Bulls saying?

Bill Ackman

Ackman’s Pershing probably lost more money than anyone else with their stakes in Berkshire, but the billionaire investor and founder of Pershing Square received a 70% return on their investments during 2020. In January 2020, net asset value per share for Pershing rose from $27 to $45 at the end of December. Ackman has been positive about where trends are heading, and if investors make smart moves now, the outcomes will swell beyond market expectations.

Warren Buffet

“You can bet on America,” the billionaire investor said at the end of 2020. Buffet has had a booming career, but he shares that although the market can do anything, and go in any direction, investors and traders will still need to watch what they’re doing in the new year. “Make smart choices, and invest in broad, diversified index funds.”

Larry Ellison

Founder of Oracle, Ellison has managed to grow his net worth to more than $84 billion thanks to Tesla. Ellison did leap a few years back, purchasing roughly 1.7% of Tesla’s outstanding shares. In August 2020, Tesla stock endured a 5-1 stock split, and in the same week, Ellison’s shares went from 3 million to 15 million. Hist stock is now worth $13.2 billion, and Ellison is positive that it’ll outgrow market capacity, with more competitors coming to the market and Tesla rapidly growing.

What are Bears saying?

Mark Cuban

“Learn to hedge,” says Cuban. Although he teeters more towards a Bull trader, Cuban is somewhat perplexed by the current state of cryptocurrencies and the strong dips it has taken over the first few weeks of January. Cuban pushes people to be aware that crypto and stocks won’t pay off your debts, and that in the current state of things, is even riskier than you may think.

Howard Marks

Marks has claimed that “the odds aren’t in investors’ favor,” stating that the current economic crisis, business closures, high unemployment rates, a global pandemic, and other unforeseen circumstances will ultimately tip the market. Currently, stock prices are high because investors are afraid of missing out, buying low-end and high-end stocks up, and blowing the bubble to the brink of explosion.

Ray Dalio

Yes he wins a lot, but: Dalio’s company got hit hard, with assets declining 15% amid the pandemic. Dalio has mentioned that it might take some time for the market to stabilize, and young investors shouldn’t change their strategy, but remain cautious as the coming decade could be “a lost decade.”

Monitor this space closely for more updates on the bulls and bears.

Adriaan Brits: Adriaan Brits is a multi-sector analyst and business consultant with notable commentary on the S&P500. He loves to evaluate fast-movers and to be ahead of the trend.
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