There is no precise way to predict about a bearish market condition. Only by observing and analyzing the socio-economic conditions, one can speculate about the future performance of the stock market. Bear Market Predictions are based on the concept that, something that goes up, must come down at some time or either.
This means that if the market rises at some point of time, it will also fall and if the market falls for certain time period, it will again take off at some point of time. So, in a bear market situation, it can be easily predicted that the stock market will recover and again start to perform well.
In fact, there is no precise procedure of making Bear Market Predictions. But, by observing and analyzing the socio-economic situations, one can just make speculations about what is going to happen in the stock market. In most of the cases, it has been seen that, crisis of the international market impose a negative impact on the stock market of a particular country.
Sudden crisis can generate bearish market conditions. Sudden economic downturns can negatively affect the performance of the stock market and as a result the investors can loose their confidence to invest in the stock market.
When the reports of stock market research reveal that, many indexes have changed by an extent of 15% to 20%, then it can be predicted that the stock market is going to experience either a bearish market condition or a bullish market condition.
However, there are some certain market conditions that prevail in bear market. In bear market situation, demand for securities suddenly decreases, whereas the market experience huge supply of securities. This happens because in a bear market, few investors want to buy securities, while a large part want to sell off their securities. For this reason, stock prices fall.