The stock market can seem impossible to interpret – there are rolling returns, graphs, tables, and maps – all of which indicate performance. Without knowing how it is possible you may miss important factors or even read it wrong.

However, we are here to help and provide you with some insides into how to interpret the material. Whether you are casually browsing or looking to make your fortune – these tips will help you on your way.

Rolling Returns

These will be displayed in charts that show you the stock market’s performance via rolling index returns. This is one of the best ways to investigate market returns and worth getting comfortable with.

They aren’t calculated by calendar year, but instead, they span over one/three/five years’ worth of performances from the selected start date. You will be able to check the stock’s performance over time and discover the best one-year index return as well as the worst.

Stock Market Maps

Stock market maps are an insightful way to view the performance of the stocks depending on whatever factor is most important to you. Whether you want to discover asset classes, sectors, or perhaps even the entire country’s stock market, go ahead.

There is a wide variety of data that is represented in different colors that help you interpret it quickly. This makes them striking in comparison to other data and some of the best maps can even be described as fun.

What better way to get information and enjoy yourself while doing it?

Historical Bear Markets

These markets are sustained periods or downward trending stock prices that are often accompanied by an economic recession, high unemployment rates, but also good buying opportunities as the prices will be low.

Some of the biggest and most recognizable bear markets in the past century include the Great Depression and Great Recession however there is a bear market that began on March 11, 2020, that was brought on by many factors including the Covid-19 pandemic.

A bear market with had a 20% drop from its peak to a trough and they statistically occur 1 out of every 3.5 years lasting around 365 days.

The Past Does Not Dictate The Future

It is always important to remember while conducting stock market research that past performance does not indicate how it will behave in the future. Just because a stock or fund climbed or dropped over the past few years – doesn’t mean the same will happen.

Be sure to base your decision on long-term averages, risks, and your personal goals and then weigh up the risks. Don’t solely rely on what the stock market is telling you and invest in things with high returns, assuming to make a profit.

Investing is a multi-faceted process and the stock market can certainly be misleading.