They run for the exits, hoard cash, and hope their portfolio allocations can weather the storm. Understanding the bear market meaning will help alleviate fear and allow investors to navigate a bear market with bear market investing strategies capable of delivering long-term profitability.
With many focused on the 20% correction, investors must consider the signs pointing toward a bear market, as it does not happen overnight. Smart money makes portfolio adjustments and applies bear market strategies as the bear market forms, and not after price action meets the bear market definition.
After a sharp 33% sell-off, investors and traders pushed markets to fresh all-time highs, which created what appears as a massive bull trap as it ushered in a new bear market. Some fear it could burst the “everything bubble” created by central banks and dwarf the 2007-2009 bear market. The scenario is ideal for the current bear market to last several months and potentially longer. Investors should consider bear market investing, as the bear vs.
Phase three often creates a bull trap, with markets rising amid misplaced optimism the bear market is over, causing sharp rallies like a bull thrusting its horns in the air