Investing in a Bear Market

Contrary to popular belief, you can get rich in a bear market.

There are many different ways to do this. Today, we’ll focus on the buy and hold strategy.

A bear market is defined as a drop in a stock market index of 20% or more from the all-time high. Most bear market drops are much more than 20%. They are typically much shorter than bull markets, too. The average bear market lasts 13 months compared to a four-year average lifespan for bull markets.

Investing in a bear market takes greater discipline, but it’s also more lucrative.

In a bull market, it can be easier to invest. If you are investing every month and you see the value of your investments grow every month, it becomes enjoyable.

In a bear market, you also invest every month, but you might see the value of your investments drop. You must fight the urge to stop investing, or even worse engage in panic selling, and continue to follow the same bull market strategy. It can be uncomfortable, but if you follow this strategy, you will be rewarded immensely when the bull market returns.

If this current bear market lasts the average 13 months, we might expect to see the end of it by early 2023. However, it could last longer than that.

Sometimes we are our own worst enemies when it comes to saving and investing. Having someone in your corner to help can make all the difference. If you need some encouragement or advice, join the Money Mission Facebook Group or our Membership Program. We will help you stay on track and achieve your financial goals.

Have a great weekend, and I’ll talk to you again soon!

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