Correction or Bear?

You may have heard a lot in recent weeks about China's stock market falling.  First it went into a correction and now it is in official bear territory. 

But what exactly defines a correction or a bear market? 

Firstly, markets can be defined as any financial market mechanism from the stock market, Bond market, comodities, property etc. 

But, put simply a correction is a fall of at least 10% in any of those markets

A bear market by contrast is a fall of 20% or more in any market measured over any 2 month period. 

Now, whilst this might all sound very frightening and bad news, markets falling, corrections and bears, for the savvy investor, and for Spectrum IFA Group clients, this represents a great buying opportunity. 

Whilst most eyes are currently on Greece and to take the phrase 'no one wants to catch a falling knife', my eyes are firmly lodged on the Chinese market for my clients.  If the falls continue then the value of an entry into the Chinese equity market is going to become better and better.  

Nevermind Greece, that contributes only 2% of GDP to the EU.  Keep your eyes on the developments in China and how to buy into the markets of the worlds fastest developing economy, and probably the biggest in the not so distant future. 

If you would like to benefit from our expertise and become a Spectrum IFA group client and have a proactive working relationship with your financial adviser then feel free to get in touch on gareth.horsfall@spectrum-ifa.com or call me on +39 3336492356