On the Rise: Kavan Choksi on Signs of a Bull Market

Kavan Choksi on the Telltale Signs of a Bull Market

2009 marked a monumental shift in the stock market, setting off an unprecedentedly long bullish streak. Kavan Choksi mentions that this seemingly unending trend brought much-welcomed relief for financial experts haunted by past crashes.

It was good news for many investors as well as the market. A bullish stock market means more trading movement and plenty of profit opportunities. A strong market also boosts the larger economy's employment and disposable income.

As the stock market moves up and down, investors need to keep a watchful eye. Kavan Choksi points out that it's not always easy to spot when a bull market is beginning - but having an analytical mindset can help you stay ahead of shifts in the markets. Knowing how (and when) to capitalize on rising trends will give your portfolio its best chance for success.

For this post, Kavan Choksi shares two more common signs to look for if you believe a bull market is happening or about to happen.

Index of Leading Economic Indicators (LEI)

One way to tell if the stock market is going up or down is to look at the LEI. Kavan Choksi explains that the index combines different factors affecting the stock market. These factors include stock prices, real M2 (a measure of how much money is available), the index of consumer expectations, and many more. The stock market is doing well if the LEI is increasing or above average.

General pessimism on the stock market

The first phase of a bull market is when people are pessimistic about investing, and the media is negative. According to Kavan Choksi, this happens when stock prices go down to a point where it's not worth the risk to invest. Then people start buying stocks again, which causes prices to go up.

Navigating the market can be a challenge, especially during times of uncertainty. But with careful research and insight into current trends, you could determine if 2023 is set to be a year for bullish investing.

Kavan Choksi is a freelance business management consultant. He has always shared his business, finance, and economics insights with his readers. Nowadays, he works on his series of blogs, which can be accessed by clicking this link.