Rebound means to bounce and is a term often used in basketball when a player retrieves the rebound of a shot that did not go in, taken by another player. In the capital market, a rebound occurs after a decline (bearish). Thus, it can be concluded that a rebound is a state of rising from a bounce.
The term rebound is always related to bearish. Without a condition of the stock market experiencing a downward trend or weakening, there will be no rebound. A decline in the stock market is usually influenced by slowing or declining economic growth compared to the previous year, increasing unemployment rates, trade balance deficits, and other factors.
Bearish conditions are typically seen with a decline in the overall stock price index. If this condition continues, investors will certainly consider the option to sell stocks to avoid losses.
A condition that was initially only predicted then becomes a reality caused by the exaggerated reactions of investors selling their stocks in a herd. Panic that leads to stock sell-offs will trigger bearish conditions.
In a bearish situation, stocks are on discount, so what should we do during a bearish period? Well, what you should do is as follows: