Lessons on Investing - How to make money during a Bear Market and a common mistake you should advoid.

 A Bear Market is a term used to describe a 20% or more decline in the overall value of the stock market from its peak prices.  It symbolizes that the investment community is nolonger optimistic about the future of the stock market. Bear Markets can last any where from a few weeks (the pandemic-induced bear market lasted a mere 33 days making it the shortest bear market on record) to a few years. For example, the Great Depression was a bear market that lasted over 10 years. Though devastating to those that are already invested in the stock market, a bear market can be a great opportunity for individuals that are considering buying into the stock market. If you have some extra cash laying around and can afford to leave this money invested for an unspecified amount of time, you could possibly make a substantial amount of money(profit) off your investment once the market has fully recovered. 

This brings me to my next word of advice. If you find yourself in a bear market, it's important to remember that stocks normally recover from  dramatic declines in time. So instead of panicking  and selling all your investments at a lost, you'll probably do better patiently holding on to your investments until the overall market starts to recover.

And I highly recommend seeking professional advice before putting any of your money into the stock market. Thank you for visiting Financial Blueprint!