{"id":1191,"date":"2023-04-23T12:47:10","date_gmt":"2023-04-23T09:47:10","guid":{"rendered":"https:\/\/beatmarket.com\/blog\/?p=1191"},"modified":"2024-03-15T12:23:21","modified_gmt":"2024-03-15T09:23:21","slug":"what-is-market-bottom","status":"publish","type":"post","link":"https:\/\/beatmarket.com\/blog\/what-is-market-bottom\/","title":{"rendered":"What is Market Bottom?"},"content":{"rendered":"<div class=\"fpm_start\"><\/div>\n\n<p><em>I wonder how many investors have been washed out of the market by the current wave of falling prices. And how many have previously stated that a new market high will follow the past one? I&#8217;ve written before that market movements never fail to surprise.<\/em><\/p>\n\n\n\n<p><strong>Let us look at the US market highs:<\/strong><\/p>\n\n\n\n<p>1997 +31,01<\/p>\n\n\n\n<p>1996 +20,26<\/p>\n\n\n\n<p>1995 +34,11<\/p>\n\n\n\n<p><strong>And now let us look at the US market downs:<\/strong><\/p>\n\n\n\n<p>2002 -23,37<\/p>\n\n\n\n<p>2001 -13,04<\/p>\n\n\n\n<p>2000 -10,14<\/p><script data-noptimize>fpm_start( \"true\" )<\/script>\n\n\n\n<p>Or even worse. Think of the Nasdaq 100 index and the 80% drop. I don&#8217;t know what professional analysts will say about this post of mine, but I can smell with my unprofessional eyes and nose that nobody really knows anything. And not even Michael Burry knows how Mr. Market will behave tomorrow.<\/p>\n\n\n\n<p>Of course, I read numerous reports and articles, which often say that the index has found a new upward impulse at the current support levels or that another promising startup will soon hit its resistance level. I read and think, <em>&#8220;How do they do it? How do they find it all and identify all the levels as if it is some kind of dumb arcade video game?&#8221;<\/em> The further I go, the more I realize that 99% of professional market analytics is a convoluted tarot reading at best. Sure, it can be entertaining if you are into esoteric mambo-jumbo and magical thinking, but it fails miserably over the long distance. There is no guarantee as to what will happen today or tomorrow and how the market will react. Indices will rise higher and fall even lower \u2014 that is the nature of the indices. There can be zero guarantees that the market will go down or up exactly as your favorite expert predicts.<\/p>\n\n\n\n<p>And, you know, there is no reason to worry about short-termism. For an investor, there are only two things: either you are in or you stay out of the market. If you choose to stay invested in the market, the only other thing that matters is the company&#8217;s reported performance. Business health is paramount. A company\u2019s resilience, its ability to adapt, change, and grow. Raw numbers, not raw emotions. Spreadsheets can tell you what is going on: looking at the balance sheet we can <em>assume with a degree of probability <\/em>that the company will continue to replicate its past performance or will pivot in a major way. Assumption \u2014 no less, mo more.<\/p>\n\n\n\n<p>So what is the market bottom when we try to evaluate the business health of a company? To me, the Bottom is when sales have been falling for a long time, the long-term debt load is rising, dividend payments are not being paid or are reduced, operating profits are tending toward zero, management is talking about additional stock issuance and the company is unexpectedly rushing to issue bonds.<\/p>\n\n\n\n<p>Therefore, you will do yourself a favor by not looking for the market bottom on the charts. Search for decent businesses and study their financial statements. That is precisely what we at BeatMarket do on a regular basis \u2014 we automate the exhausting task of going through balance sheets. But there is always another way: you can buy an index fund, which is also a great idea for most people.<\/p>\n\n<div class=\"fpm_end\"><\/div>","protected":false},"excerpt":{"rendered":"<p><a href=\"https:\/\/beatmarket.com\/blog\/what-is-market-bottom\/\" class=\"wp-block-post-excerpt__excerpt\">I wonder how many investors have been washed out of the market by the current wave of falling prices. And how many have previously stated that a new market high will follow the past one? I&#8217;ve written before that market movements never fail to surprise.<\/a><\/p>\n","protected":false},"author":1,"featured_media":1192,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[16,22,12],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.12 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is market bottom and its role in evaluating stocks | Beatmarket<\/title>\n<meta name=\"description\" content=\"For an investor, there are only two things: either you are in or you stay out of the market. 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So what is the market bottom when we try to evaluate the business health of a company?","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/beatmarket.com\/blog\/what-is-market-bottom\/","og_locale":"en_US","og_type":"article","og_title":"What is market bottom and its role in evaluating stocks | Beatmarket","og_description":"For an investor, there are only two things: either you are in or you stay out of the market. So what is the market bottom when we try to evaluate the business health of a company?","og_url":"https:\/\/beatmarket.com\/blog\/what-is-market-bottom\/","og_site_name":"Beatmarket Blog","article_published_time":"2023-04-23T09:47:10+00:00","article_modified_time":"2024-03-15T09:23:21+00:00","og_image":[{"width":1200,"height":630,"url":"https:\/\/beatmarket.com\/blog\/wp-content\/uploads\/2023\/04\/facebook-5.png","type":"image\/png"}],"author":"CEO BeatMarket","twitter_card":"summary_large_image","twitter_misc":{"Written by":"CEO BeatMarket","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/beatmarket.com\/blog\/what-is-market-bottom\/","url":"https:\/\/beatmarket.com\/blog\/what-is-market-bottom\/","name":"What is market bottom and its role in evaluating stocks | Beatmarket","isPartOf":{"@id":"https:\/\/beatmarket.com\/blog\/#website"},"datePublished":"2023-04-23T09:47:10+00:00","dateModified":"2024-03-15T09:23:21+00:00","author":{"@id":"https:\/\/beatmarket.com\/blog\/#\/schema\/person\/bc0e7ca6eb01313260aba2b3843c0caa"},"description":"For an investor, there are only two things: either you are in or you stay out of the market. So what is the market bottom when we try to evaluate the business health of a company?","breadcrumb":{"@id":"https:\/\/beatmarket.com\/blog\/what-is-market-bottom\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/beatmarket.com\/blog\/what-is-market-bottom\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/beatmarket.com\/blog\/what-is-market-bottom\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"BeatMarket","item":"https:\/\/beatmarket.com"},{"@type":"ListItem","position":2,"name":"Blog","item":"https:\/\/beatmarket.com\/blog\/"},{"@type":"ListItem","position":3,"name":"What is Market Bottom?"}]},{"@type":"WebSite","@id":"https:\/\/beatmarket.com\/blog\/#website","url":"https:\/\/beatmarket.com\/blog\/","name":"Beatmarket Blog","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/beatmarket.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/beatmarket.com\/blog\/#\/schema\/person\/bc0e7ca6eb01313260aba2b3843c0caa","name":"CEO BeatMarket","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/beatmarket.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b0eb19c196c9dacd545533e150aeefe6?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b0eb19c196c9dacd545533e150aeefe6?s=96&d=mm&r=g","caption":"CEO BeatMarket"},"description":"Hello, my name is Max and I am the founder of BeatMarket. Let me tell you a few words about our philosophy. BeatMarket is a safe space for long-term investors who want to develop healthy investing habits. BeatMarket is created for people who ignore trades of the day, most active stocks signals, and speculation trading courses. Beginner investors will find a special set of BeatMarket tools that helps avoid common mistakes at the start of their investment journey. The platform makes stock research and portfolio Welcome to the community of professionals! Yours sincerely, CEO BeatMarket, investor, entrepreneur, Max Dividends About the Author Max Dividends Seasoned entrepreneur, dedicated father of three, and private investor specializing in high-yield dividend growth stocks.\u200b Professional Background \u2022 Entrepreneurial Ventures: Founded and managed over 10 successful businesses across IT, media, and retail sectors.\u200b \u2022 Investment Experience: Over 15 years of experience in investments, with a portfolio surpassing $1.5 million.\u200b Investment Journey \u2022 From Risk to Reliability: Max started his investing career more than 15 years ago like many\u2014chasing high returns through risky bets, speculative plays, and market timing. After hard-earned lessons and financial losses, he pivoted to a long-term strategy grounded in fundamentals, discipline, and compounding. \u2022 Current Portfolios: Today, Max manages several well-diversified dividend portfolios across U.S. and international markets, focused on high-yield stocks with a track record of annual dividend growth. His primary portfolio is valued at over $1.5 million and generates five figures in annual passive income. \u2022 Dividend-First Strategy: Max\u2019s core focus is building sustainable income through quality businesses\u2014think wide moats, strong free cash flow, and shareholder-friendly management. He follows strict rules around payout ratios, dividend consistency, and sector diversification. \u2022 Personal Milestones: - Fully living off dividends since his early 40s - Reinvests 100% of excess cash flow - Built an \u201cInflation-Proof Income Engine\u201d to withstand economic cycles \u2022 Goals: Max is on a mission to reach complete financial independence and retire before age 50. His broader goal? Help thousands of other investors achieve the same through no-BS education and timeless dividend principles. MaxDividends Strategy \u2022 Objective: To build a reliable passive income stream through strategic dividend investments, aiming for financial independence and early retirement.\u200b \u2022 Achievements: Began living off dividends by age 40, with plans to retire before 50.\u200b Publications \u2022 \ud83d\udcd8 I Love Dividends Why dividend investing isn\u2019t just smart \u2014 it\u2019s addictive. \u2022 \ud83d\udcd7 The 5 Rules of Timeless Dividend Investing A practical, no-fluff guide to building long-term wealth through dividends. \u2022 \ud83d\udcf0 MaxDividends on Substack Max's flagship publication where he shares deep dives, monthly income reports, and stock breakdowns. Read by thousands of serious dividend investors around the world.","sameAs":["http:\/\/91.232.105.158:8000"],"url":"https:\/\/beatmarket.com\/blog\/author\/admin\/"}]}},"_links":{"self":[{"href":"https:\/\/beatmarket.com\/blog\/wp-json\/wp\/v2\/posts\/1191"}],"collection":[{"href":"https:\/\/beatmarket.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/beatmarket.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/beatmarket.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/beatmarket.com\/blog\/wp-json\/wp\/v2\/comments?post=1191"}],"version-history":[{"count":1,"href":"https:\/\/beatmarket.com\/blog\/wp-json\/wp\/v2\/posts\/1191\/revisions"}],"predecessor-version":[{"id":1193,"href":"https:\/\/beatmarket.com\/blog\/wp-json\/wp\/v2\/posts\/1191\/revisions\/1193"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/beatmarket.com\/blog\/wp-json\/wp\/v2\/media\/1192"}],"wp:attachment":[{"href":"https:\/\/beatmarket.com\/blog\/wp-json\/wp\/v2\/media?parent=1191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/beatmarket.com\/blog\/wp-json\/wp\/v2\/categories?post=1191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/beatmarket.com\/blog\/wp-json\/wp\/v2\/tags?post=1191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}