I hear this all the time: “Bob, it’s easy to make money in a bull market, I just want to make money in a bear market.” For the better part of sixteen months we have been in a bear market. If you have been making money, at least in 2023, then you’re already doing it.
Many traders don’t even know when they are in a bear market. Sound ridiculous? It’s not. Markets go up in a bear market, not just down.
And by the way, we are still in a bear market. I have been getting a lot of pushback from investors and traders who believe the bear market is over and we have moved onto the next bull market. Based on the indicators, that simply is not true.
Further, why do we need to be in a bull or bear market at all times? The flip-flopping from bull to bear labels lately makes little sense. Instead of looking for good trades, far too many people are busy wringing their hands over the long-term trend.
What if we were in neither a bull or bear market? Wrap your head around that concept! You can make money in a sideways market, though it requires some hard work.
You can make money in a bear market
The reason so many people think it’s hard to make money in a bear market is because they rely on the media to tell them what the market conditions. When conditions become tight or difficult, the alarm bells go off. Fear takes over, and traders sell for emotional reasons. This is usually the worst time to make a move, but most people do it anyway.
Whether conditions are bullish or bearish, you need to step back, analyze the markets, and make your own decision. (That may require some extra knowledge or level-headed guidance from someone who isn’t worried about media ratings.)
In the end, it really does not matter what type of market we are in. Markets go up and down in a bear market, just like they do in a bull market. Remember: You can make money in a bear market, and you can lose money in a bull market.