Last Bear Market actually refers to the bearish market condition of the stock market that happened in the most recent past. Bear market situations will continue to take place as long as the stock market exists. Only the intensity or extent of the bearish market condition can be moderated.
By Last Bear Market, we refer to the bearish market conditions that took place in the most recent past. As long as stock market remains, the bullish market situation and bearish market situation will continue to occur. The intensity of the cycle from bear market to bull market and from bull market to bear market can lessen, but the bearish market condition will continue to happen, after intervals, short or long.
In fact, all over the world, it is being noticed that the intensity of the cycle of bull market to bear market is lessening. One main reason behind this is the rising participation of the middle-class in the stock market.
There were times, when, only the rich people used to participate in the stock market by purchasing shares. At those times, stocks used to be traded among the wealthy persons. But, in the present day world, the middle-class is also taking part in the stock market, in order to earn high return from their money.
They invest their money in various shares, according to their capacity and in many cases earn good returns by holding a well-diversified portfolio.
According to experts, if this trend of increasing middle class participation continues for long time, then as a result, the extents of bullish market condition and bearish market condition can become moderated.
The middle-class participation in stock market can affect a bearish market condition in two ways. If in the bear market situation, the middle class convert all their stocks into cash, then the bearish market condition can become even tougher.
But, if at the time of bear market, the middle class continue to remain in the stock market by holding their existing investment portfolios or by adjusting their investment portfolios, then the extent of the bearish market condition cannot be stretched that much.