“What is a bear market? It’s a market in which values rapidly fall and this fall is sustained across several markets. A bear market can trigger a serious recession or depression, if consumers become too despondent. …but more commonly the market stabilizes through a series of corrections, small and temporary drops in market value which bring prices down to a more reasonable and sustainable level.”
quoted on wisegeek.com
A bear stock Market is something that we all can do without. I consider myself a bull in the stock market world. I buy stocks to do one thing… go up in value. Unfortunately, there are to many hedge funds & other negative traders out there who short stocks (we’ll explain that in a later post.) in hopes of the price to drop. In doing so they can actually cause the stock to go down.
Mix that with profit takers & you end up with a bear market like we seem to be in. Some believe that we have finally reached an “official” bear stock market this past week.
My portfolio has taken a beaten in the last week or so, but that’s OK. I’m watching the stocks that I invested in & since I always keep some cash in reserve (as you should too for this reason) I will be buying more on weakness. I know the stocks that I’m in are strong ones & will bounce back off these levels & that I will make a profit in no time at all.
I get no pleasure from being negative & will always look for the good & positive in life as well as the stock market. I just sit back & wait for the bears to hibernate.
Tags: NASDAQ, NYSE
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