Stem the Tide

What Is Stem the Tide?

Stem the tide is an articulation that means to endeavor to stop or stay away from a common trend. With regards to an investment or a trade, it is much of the time utilized while alluding to one's own position. Assuming the value of that position is losing money, closing that position would be said to stem the tide, or stop the trend of losing money.

A comparative phrase in a similar setting would be "stop the bleeding."

Stemming the Tide

Stemming the tide alludes to rolling out an improvement. In any case, it doesn't be guaranteed to comprise stopping the unfavorable trend completely or right away, yet rather it suggests a decreasing or continuous reduction of the negative trend. Since the goal of containing it and eventually taking out the negative trend is attractive, it could be acceptable for it to happen soon.

Stemming the tide in an investing setting is utilized as a representation for switching the effects of a long-term market trend. This setting as a rule alludes to macroeconomic trends in which the tide would allude to trends that might play out over months or even years, as opposed to short-term changes that might reverse in a shorter period. Issues like inflation, high unemployment, or high interest rates, would fall into this category.

With regards to trading or the analysis of an individual stock, stemming the tide can allude to endeavors to halt the drop in a share's price with the long-term goal of shifting its course.

Beginning of the Term

This phrase utilizes "stem" to mean "stop" or "reduce." Thus, "stem the tide" was initially utilized among seafarers to lay out a course that would oppose the tides or ocean waves, particularly in turbulent conditions, to hold back the tide in a real sense.

Involving this ocean analogy for market trends was instituted by one of the market's most memorable technical analysts, Robert Rhea. Rhea was a defender of Dow Theory, a form of technical analysis that he would use to call market tops and bottoms, and afterward profit from those calls. Tides are frequently alluded to with regards to triple screen trading. Utilizing this system, a trader utilizes a longer-term chart, or market tide, as the basis for trading choices.

For example, on the off chance that a trader plans to trade daily they would look at the week after week moving average convergence divergence (MACD) histogram, as its slant gives some indication of the market tide.

How a Business Can Stem the Tide

For businesses that are bleeding money to stem the tide, there are several general steps that can be attempted. The clearest initial step includes distinguishing the source of the losses and ending it. In the event that losses are coming from overhead, reduce fixed costs. In the event that losses are coming for poor productivity, dispose of useless workers or shift focus over to mechanical arrangements. On the off chance that it is an exorbitant and inadequate marketing campaign, reexamine your advertising budget and marking efforts.

Additionally, guarantee that your business has and is adhering to its budget and financial plan. Now and then, suffocating in debt can be tackled strategically by means of a bankruptcy and restructuring.

When the tide has been stemmed, in a manner of speaking, modifying profits and developing at a reasonable pace without forfeiting quality or customer service is essential to reappear and make due.

Instances of Stem the Tide

Stem the tide is generally conjured to convey the meaning of switching a negative trend and preventing it from deteriorating. These trends can incorporate a rising crime rate, negative public assessment on a company, the loss of qualified workers from a given geographical area, negative demographic trends, and reasons for environmental pollution, among numerous others.

For instance, consider this sentence found in the definition of capital outflow: "Administrative limitations on capital flight look to stem the tide of outflows. This is normally finished to support a banking system that could collapse in various ways."

One issue of current interest to businesses is stem the tide of rising healthcare costs for employees. Numerous urban communities in the U.S. are currently wrestling with stemming the tide of withdrawing qualified and skilled workers who are leaving for other more alluring areas. One more setting where specialists might want to stem the tide is in the decline of small business in the U.S. soon after the Great Recession. At a smaller scale, a company could have to stem the tide of profit loss due to inventory shrinkage, ability loss, or being outsmarted by a contender.

With regards to business results and trading shares associated with companies, this sentence comes from the article "Shopping center Anchors Hit Multi-Year Lows After Dismal Quarter:"

"Retail bulls have been promoting the company's substantial real estate assets for quite a long time, yet that has done practically nothing to stem the downward tide, particularly with shopping centers all around the country presently undermined with terminations due to declining foot traffic."

Highlights

• The phrase today is in many cases utilized while alluding to a string of losses in several trading or investment positions, subsequently laying out a common trend of utilizing money.
• Stem the tide is a phrase that means to oppose or end an overall trend.
• With regards to business results, it might allude to pivoting the performance of a company from losing money to earning money.
• The phrase starts from nautical terminology, by which boats would try to redirect approaching waves.

FAQ

What Does Stem the Flow Mean?

Like stem the tide, stem the flow is a phrase that rather means to stop something from spreading. In this way, to stem the flow of information or of a disease would mean to stop that event from duplicating.

Where Does the Phrase "Stem the Tide" Come From?

Stem the tide, initially "stemme the tyde" comes from Old English, where it was utilized with regards to ocean journeying. There, it meant to tack against the overarching tide or blustery waves to try not to be led astray, or more regrettable.