The Bear Debate

With the recent falls in the market, which have resulted in the broadly accepted opinion that this represents the end of a bull market, the debate about what to do with investments surrounding the possibility of a bear market continues.

The FTSE 100 recently fell to a six month low of 5511 after peaking at 6137 a month previously and some analysts predict that there will be further falls in the months ahead.

Fund management guru Anthony Bolton stated at the recent Securities and Investment Institute event that the falls in the market symbolised the end of a bull market rather than a mid-cycle correction.

Although Anthony Bolton believes it could be the end of the bull market, many consider that this is merely a healthy correction. In the last century there has only been six bull markets of this length of time, and there is a general view that it has to be towards the end of not at the end.

However, there is much controversy amongst experts as to what extent a bear market will take over, with some believing that a correction is on the cards whilst others predict that a mini bear market is more likely.