Hello people from all world
Today I want to write to you about a time when all investors will go through several times in their investor life, which is the bear market.
In a bear market, especially when it lasts for many months or even years, people are emotionally devastated. I don't say this in relation to small times of decline, as we are living now, but larger times, such as more than one consecutive year of decline. At these times, the media usually only throws bad news about the market. Everything is bad, the economy is not doing well, the performance of companies is bad... this news, combined with the fall in asset prices, makes people sell their assets and have a loss, because they sold at a price smaller than they bought.
In variable income there is no linear market, neither up nor down, that is, we will be susceptible to moments of euphoria and moments of crisis at all times. In moments of euphoria, people usually earn a good amount of money, because everything they buy tends to increase in value. But, can we gain anything in a falling market?
So, in these falling market hours we must keep our emotional tight and stay away from the market. We should forget about company quotes. The best thing to do here is to focus on good activities, like work, physical activity, walking the dog, taking care of the family, etc. By doing this, the sale of some asset will tend to decrease. We shouldn't be back at the market in an hour. It's time to buy an asset. At this moment, the price of stocks is low, so we will take the opportunity to buy a stake in a company for a much lower price, so we will have a greater return on this purchase.
There are people who like to make a box to take advantage of these moments of fall. I don't like it, I prefer to make regular purchases once a month and always have my money invested in stocks. So, I take full advantage of the effect of compound interest on my portfolio, in addition to, if a company has a very large price growth in a short period of time, I can be invested in it to take advantage of this growth, which I would not have if my money was in the box.
In conclusion, in the bear market we will be able to buy stocks, reits, cryptocurrencies for a lower price, maximizing our long-term return.
That's it folks, I hope you liked it.
A good day to all!!!
source of picture: https://www.onze.com.br/blog/bear-market/
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very nice!!!