If you’ve been around for long enough, you can’t have failed to notice that the economy goes through booms and busts, and these are known as bull markets and bear markets for our investments.
The two names might sound similar, but trust me, the two phenomena are worlds apart. Let’s take a look at what bear and bull markets are, what to expect from them, and how to react to them for maximum profit.
During a bull market, everything looks peachy — the economy is doing great, stock prices are high, and unemployment is low. What more could you ask for?
It’s a time when investors see their investments skyrocket in value and can find the most opportunities for profit-making since everything is booming. Sounds amazing, right?
This might all sound like a disaster for investors, but that isn’t necessarily true — because just like bull markets, bear markets can’t last forever, meaning they offer a unique opportunity to make money.