Attributes of a Bear and Bull Market

There’s no denying, bull markets are fun and sexy.  Bull markets come with headlines that speak of ‘all-time highs’ and exciting IPOs of fast-growing companies coming to market.  When you think of the attributes of a bull itself, it is an animal known for charging at full speed with breathtaking strength behind it.  People that sat on the sidelines for so long then get drawn into a long-running bull market, buying at those ‘highest of high’, discarding their former fear and replacing it with FOMO – Fear Of Missing Out.  

The bear market’s attributes, on the other hand, are often overlooked.  I believe this because it does not come with sexy headlines.  Bear market headlines typically announce downsizing, layoffs and sectors falling out of favor.  However, when you think of the bear’s attributes, it too is known for its strength.  The bear may be slow and lumbering but if you encounter one in the wild, you do not question its ability to catch up with you.  Somehow off of a diet largely of berries and nuts, the bear gets through winter hibernation.  Bear markets can be a great time for buying good stuff on sale, at those lowest of lows.  This is how an investor can achieve the old adage of ‘Buy low and sell high’. 

Bear markets are best traversed with active management.  The depressing headlines often overshadow its opportunities.  Just like the bear that is carefully selecting the ripe berries, choosing which investments should survive the slowdown just fine versus which are truly going out of favor requires research and deliberation.   With patience and guidance, investors can use the deep values of a bear market to get prepped for the next bull market. 

Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities and should not be relied on as financial advice. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.