bull vs bear market

If you're wondering how to handle a bull vs bear market take a look at these graphs and explanations. 
bull vs bear market

Bull vs Bear Market info

Bull Market: Green Arrows

Bear Market: Red Arrows

The average Bear Market lasts 9 months. 

Bull markets last longer averaging around 3 years. 

Average Bull market return if you buy the dip is 113%.

Is it better to buy stocks in a bull or bear market Why?

This is how to win the bull vs bear market. Because more wealth is generated during a bear market if you buy in. Take a look at returns if you buy in the down market. Take a look at the blue and yellow lines, which one will get you bigger returns? Clearly the bear market offers a bigger return, timing the market is impossible so Dollar Cost Averaging (DCA) is a best practice during bear markets. 

bull vs bear market

Would you buy stock during a bear or bull market?

You buy in every market. Because in 30-40 years when you retire the market will go up. Nobody alive can predict what the markets are going to do in the future so according to studies done you will win if you Dollar Cost Average into the market. It doesn't matter if it's a bull vs bear market. 

dollar cost average in bull vs bear market

Bull Market

Generally this is a time when the markets are favorable and the markets are in the green. Often times this is when people start to catch on and buy into the market. This is unfortunate because in order to get the best returns you would optimally have bought into the markets when they were down. 

Bear market

As mentioned before the typical behavior for investors is to not fully catch the wave during a bull market. The optimal time is to buy into markets like these into companies that you believe will be around for 20+ years. It is common finance education that you buy low and sell high right? Buying into a dip is buying low and selling when you're retired has the highest likelihood that you'll get the best returns. 

Learn about how to analyze markets in different sectors and market caps from my millionaire mindset post

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