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Bear Market: What Nobody Is Telling You

15.09.2022

Find Out What Successful Investors Have Known for Decades

 

We have been in a Bear Market since the beginning of summer. Prices are down, but not the enthusiasm. Turn off your TV and educate yourself into what this means and how you can take advantage. While everybody is doubtful and uncertainty abounds, there can also be opportunity. One thing remains clear – the markets will get back to where they were, and beyond. When it happens, will you be in a position to profit? Find out how we have spent this summer – by creating more meaningful programs and opportunities for the better days ahead.

 

Why Are the Markets Down?

A question on everybody’s mind is “Why are the markets down”? Ask 1000 people and you will get 1000 different answers. It’s true, many reasons have caused both the stock and crypto markets to lose some value in the last half year. One of these reasons is turmoil and political instability in some parts of the world. Furthermore, central banks are adjusting interest rates. It’s a chain reaction that further causes inflation and instability. Public sentiment shifts into the fear territory and people choose to take profits while they can, causing the numbers to go down.

 

Is This Something New?

No, it has happened many times in the past (more than 26 times in the last 100 years). It will happen again in the future. By looking at the charts, we understand that bear markets are a natural cycle in the evolution of financial markets but they don’t last forever.

 

Is It Really That Bad?

No, what we’re experiencing is a bear market, not a severe market crash as some would say. The markets are taking some steps back under the pressure of the aforementioned facts. Throughout history, the stock market crashed several times: to name a few: 1987, 2001, and most recently, 2008. The crypto markets also crashed severely on a few occasions: 2013, 2018 – two instances where the regression took out more than 83% of the liquidity. As of right now, we are not experiencing a pull-back of that magnitude. We are definitely experiencing a bear market though and when that happens, we should get more knowledgeable and aware of what is going on and more importantly – what we should do next.

 

Navigating a Bear Market

If we listen to the news and go with the hype we might be tempted to believe that the end of the world is not far away. Fear and uncertainty is being pumped out by most media outlets and it’s easy to see how being an investor in times like these can be confusing. But negativity and skepticism have always been around in past bear markets. Yet somehow both stock and crypto assets have bounced back stronger than before. They will do the same in the future but until it happens, we must learn to recognize the window of opportunity presenting itself during a bear market. This window of opportunity is happening right now!

 

Ask yourself this: what opinion are you most interested in? One coming from a news channel? Or perhaps the opinion coming from investors with decades of experience who have seen it all… and have made money through thick and thin? If the first option fancies you, good luck going down a very blurry and ambiguous road. Let’s make something clear: opportunity does not come knocking on the evening news.

 

If you’re more inclined to the second option, at least you’re listening to people who have been through this before. These are investors who’ve seen quite a few bear markets and recession periods. It happens that most of them are old billionaires and will not take the time to go on public TV advising people when to invest. Anyway, you should not take investment advice from anybody. You should do your own research.

 

So how do they approach bear markets? Warren Buffet, one of the world’s most successful investors has a very clear approach: when the markets are down, he buys more! If something you want to invest in now has a better price, wouldn’t you think that is a good deal? Why wait for the price to go back up instead of buying now?

 

Banking giant JP Morgan is similarly outspoken: “Buy the dip!” says the financial institution that has been making money since before the railroad was invented.

 

So why is there such a discrepancy between what experienced investors are doing and what is currently being hammered out in the media? We will just say this: real investors plan for years in advance. Speculators and amateurs plan for next weekend.

 

Will You Be in a Position to Profit?

One thing remains certain: bear markets come and go. They don’t last forever. Sometimes they only last a couple of months. For experienced investors, bear markets are a blessing. Assets will start climbing up again. When it happens, will you be in a position to profit? Or will you only then start thinking about investing? It has been proved in the past – smart money goes against the tide.

 

Investing is a counterintuitive discipline. Sometimes it means going against the public sentiment. It can also mean biting the bullet now, knowing you will reap the rewards later on. But investing is not for everybody. Some people would rather grab the low-hanging fruit – getting involved when the markets have been going strong for a while, making some profits, then getting out. It’s fine of course. Nothing wrong with that. But it’s important to understand how many opportunities bear markets bring to the table and how you can profit in the long run.

 

The cycle keeps repeating itself and so does the confusion. Learn to see through the smoke and mirrors and educate yourself on how you can start your investment at the right time. Timing is everything! Be proactive and learn to anticipate. Plan your investment carefully, and you will profit for the years to follow.

 

All this information is of course backed up by action! More precisely, at Coinmetro we spent the entire summer pushing out a new exchange platform and several listings that we believe are already making a difference in the crypto and blockchain space. We have selected prime assets as part of our 15 Weeks of Summer campaign, wanting to enrich your experience and inspire you in making the best decisions, despite the current market sentiment. Check out Week 8 and Week 12 of our summer campaign to understand what we mean. We have laid the groundwork for the market rebound and have kept innovating throughout the last months with a strong marketing push.

 

Join the ever-growing Coinmetro community on Discord and Telegram to find out where we are going next as a company, learn and exchange ideas with like-minded people. To begin your trading and investing journey today, take action now and sign up to our platform in just a few steps. If you are already a Coinmetroid – jump to our new exchange and experience a premium trading and investing platform.