Navigating the stock market requires understanding its natural cycles and maintaining a long-term perspective.
By grasping these principles, you can gain a clear-eyed understanding of how the market works and develop a sound investment strategy for the future. So, here are the 5 key concepts to remember when investing in stocks for long-term gains:Bear markets, periods of significant price decline, are inevitable. However, they tend to be shorter than bull markets .
During bullish phases, valuations soar and investor sentiment is euphoric, driving prices higher. However, this exuberance sets the stage for lower future returns as valuations become stretched. Eventually, the market corrects, prices fall, and fear replaces euphoria. This correction paves the way for the next cycle of growth.
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Source: Investingcom - 🏆 450. / 53 Read more »