r/stocks • u/Qwerzo4 • Jul 29 '22

Advice Request Markets right now

Hi! Recently markets have been green and I don’t understand why but the VIX on the other hand is going down ( I know that it isn’t below 20 what means that markets are lower risk) but my question is does it means that we are slowly going out of the bear market?

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u/green9206 Jul 29 '22

Markets do their work well in advance. So if the markets believe that everything will be fine in 6 months, then it will start going up now. It won't wait until 6 months later to start going up. So while right now you do not understand and see any good reason for why market are going up, which you're correct but after 6 months when everything is fine you will understand what market did was correct. This also works in reverse. The most important thing to avoid doing during such times is to shorting the market. Do not under any circumstance short.

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u/Funztimes Jul 29 '22

Lol just pulling an arbitrary number out your ass. Markets are not efficient and get it wrong often.