There are two different states of the stock market: bulls and bears. Just like bears, this state of the stock market is scary, making even the most experienced investors tremble. However, the bear market will eventually hibernate, returning the stock market to normal.
Do you remember how a bear attacks? Their massive claws strike downwards – just like a falling stock market. A bear market happens when investment prices drop by more than 20%. At this time, many people are scared to invest in the stock market. Although bear markets happen every few years, it will catch many new investors by surprise.
Tips and tricks
Sometimes the best investments are the ones most surprising. Many investors will see price drops as a sign to get out of the market… others see it as an opportunity to explore further into the bear cave.