The Bear And The Bull

     Bear markets and Bull markets. The Balance between the two is amazing to watch. They’re the Yin and Yang of the investing world. Just like with Yin and Yang. there is good in Bear markets, as they're negatives to bull markets. But first, let me explain what bull and bear markets are.

     Bull markets happen when the general market trend is in an upward slope over an extended period. This period can range from 3 months to a few years. A few examples are. The post-war boom (1950), the Reagan Era (1982), the great expansion (1990), and more. These economic growths gave confidence to investors during these times and help the general public to put faith in the stock market. Although what goes up must come down, That's where bear markets come into play.

     Bear markets happen when the general market trend is in a downward slope over an extended period. These are sometimes the same length of time as Bull markets but are generally shorter. 2020 stock market crash, the 2008 market crash, the.COM bubble, and many more. Now, what came after these various events are much more memorable due to the more negative effects that had happened. A great example is 2008. In 2008 the housing market crashed which made the American and world economy go into a massive recession. It was so bad where I lived that a neighborhood called 4S Ranch, was appropriately nicknamed Foreclosure Ranch due to how many people couldn't pay their mortgage. So when these crashes and recessions happen. It ends up giving the general public distrust and doubt towards the stock market. 

     So as an investor, where do you come into play between the bear and the bull? With bull markets, you keep investing and kinda just ride through the bull market. I guess you can say your bull riding during these periods. Real simple with bull markets, just keeps investing. 

With bear markets, you need to open your third eye. Your gonna need to bang two rocks together during bear markets. Bear markets are when things dramatically decrease in price. Now with this being said, you need to understand two things. The first thing is, the prices listed during the Bear market are not your prices to sell. This means even though you may have “lost” money because of the massive decrease in a securities price. Still doesn't mean a damn thing to you. But on the other hand. this also means these desired securities, have now become significantly lower in price. Which is where you swoop in and you buy. Buy as much as you are willing to buy. Because if you open yahoo finances for a few seconds And look at the 3 major American indexes. Then just look at these major crashes then extend it by an additional 1-2 years. You’ll see something beautiful. That is that after these major bear markets. It recovers, not only does it recover it comes back better than before. This means you bought premium securities at a discounted rate and I'm sure everybody loves a good discount.

     I’ll leave you with a few things to remember. There's never a bad time to invest in the stock market. because as long as you hold for a very long period. Your money will make you money. Another thing is to block out all the noise. What I mean is when the Bear and Bull markets happen, don't listen to the media or your cousin Terry who thinks he's The Wolf Of Wall Street because he made $50 off Crypto. You need to keep your wit’s. Ride the bull to the market highs and Do not panic sell during the Markets lows. Remember when investing, fortune favors the bold.