{"id":2027,"date":"2021-08-23T11:16:36","date_gmt":"2021-08-23T11:16:36","guid":{"rendered":"https:\/\/www.freedomdigi.com\/?p=2027"},"modified":"2021-08-23T11:16:36","modified_gmt":"2021-08-23T11:16:36","slug":"how-to-navigate-through-bear-and-bull-markets","status":"publish","type":"post","link":"https:\/\/www.freedomdigi.com\/how-to-navigate-through-bear-and-bull-markets\/","title":{"rendered":"How to navigate through bear and bull markets?"},"content":{"rendered":"<p>Investing in the stock market could be a better option for your short-term and long-term investment goals. With recent advertisements and jingles being made on the benefits of <a href=\"https:\/\/www.kotakcherry.com\/mutual-funds\">mutual fund investments<\/a> and a 2019 Livemint article reporting the increasing popularity of this avenue, it is only common for you to consider this option to grow your wealth.<\/p>\n<p>While learning about the stock market, you will come across various terms \u2013 with a bear market and bull market being a couple of commonly used ones.<\/p>\n<p><strong>What is a bull market?<\/strong><\/p>\n<p>In a bull market, the market is on a rise for stocks, bonds, and other securities. There is increased investor confidence in the market and share prices soar. A low unemployment rate and a thriving economy accompany a bull market. It is a buyer\u2019s market, where the purchaser has more control over the seller during price negotiations.<\/p>\n<p><strong>What is a bear market?<\/strong><\/p>\n<p>A bear market is the exact opposite of a bull market. A market is considered bearish in nature if it is moving down extensively. During this recession, investors start getting worried and withdraw money from low-performing stocks. While bullish nature is characterized by employment and economic growth, bearish nature is characterized by unemployment and economic slowdown. Hence, it is called a seller&#8217;s market.<\/p>\n<p><strong>What causes a bull market? <\/strong><\/p>\n<p>A strong economy and high employment rates fuel a bull market. You can easily identify this by simply researching the prevailing <strong>stock market<\/strong> conditions.<\/p>\n<p><strong>What causes a bear market? <\/strong><\/p>\n<p>A bear market can be identified by a decline in every other economic aspect. Any decline, whether it&#8217;s in share prices, in the debt market, or unemployment, can be a warning sign of a bear market.<\/p>\n<p><strong>How to make profits during bearish conditions?<\/strong><\/p>\n<p>While bear markets might look scary, it is always wise to remain patient as the changing of the market is an ongoing process. If you are wondering what <strong>investment strategy during a recession<\/strong> should be adopted, here are a few tips to still earn profits:<\/p>\n<ul>\n<li><strong>Invest in a short position: <\/strong>Buy during the bull market and sell during the bear market; cut your losses and make profits<\/li>\n<li><strong>Hunt for reliable stocks:<\/strong> This will work as a smart <strong>asset allocation during the recession<\/strong><\/li>\n<li><strong>Diversify your portfolio:<\/strong> This is the best advice for all seasons\u2014never keep all your eggs in one basket. Whether it is shares, mutual funds, bonds, or other asset classes, diversify your portfolio<\/li>\n<\/ul>\n<p><strong>Taking advantage of prevailing market conditions<\/strong><\/p>\n<p>The <strong>stock market today<\/strong> experiences both bull and bear conditions. Understanding the market direction is essential to survive during a crisis. Understandably, new investors might feel overwhelmed tracking such periods.<\/p>\n<p>Thus, it is prudent to reach out to a financial advisor who can help you navigate through different market conditions by recommending <a href=\"https:\/\/www.kotakcherry.com\/stocks\">stocks to buy<\/a> and a recession investment strategy to adopt that is in line with your risk appetite and investment goals.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investing in the stock market could be a better option for your short-term and long-term investment goals. With recent advertisements and jingles being made on the benefits of mutual fund investments and a 2019 Livemint article reporting the increasing popularity of this avenue, it is only common for you to consider this option to grow [&hellip;]<\/p>\n","protected":false},"author":58,"featured_media":2028,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[78],"tags":[156,155],"_links":{"self":[{"href":"https:\/\/www.freedomdigi.com\/wp-json\/wp\/v2\/posts\/2027"}],"collection":[{"href":"https:\/\/www.freedomdigi.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.freedomdigi.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.freedomdigi.com\/wp-json\/wp\/v2\/users\/58"}],"replies":[{"embeddable":true,"href":"https:\/\/www.freedomdigi.com\/wp-json\/wp\/v2\/comments?post=2027"}],"version-history":[{"count":1,"href":"https:\/\/www.freedomdigi.com\/wp-json\/wp\/v2\/posts\/2027\/revisions"}],"predecessor-version":[{"id":2029,"href":"https:\/\/www.freedomdigi.com\/wp-json\/wp\/v2\/posts\/2027\/revisions\/2029"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.freedomdigi.com\/wp-json\/wp\/v2\/media\/2028"}],"wp:attachment":[{"href":"https:\/\/www.freedomdigi.com\/wp-json\/wp\/v2\/media?parent=2027"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.freedomdigi.com\/wp-json\/wp\/v2\/categories?post=2027"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.freedomdigi.com\/wp-json\/wp\/v2\/tags?post=2027"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}