Are you an optimist or a pessimist? You’ve heard the terms ‘Bear Market’ and ‘Bull Market’ before right? A bull market is a market on the rise and looks pretty promising, while a bear market is, as you can probably already guess, the direct opposite. It’s a market that’s on the decline and the future of it’s economic value looks bleak. The market as of this point, is kind of in the middle, with small hints of it being a Bull market in the near future. Pandemics have that affect.
Bears and bulls also describe investors when it comes to the stock market. Just like the broader definition to the overall market, it goes the same for the particular investor. If you’re a bull, you’re a glass half full type of person. You believe the market will rise and you’re pretty confident in the stocks you invest in. Bear? You think it will fall, and you probably complain about kids on your lawn all the time.
But get this. You’re probably asking, if someone is a bear then why would they invest money anyway, right? Well what’s that old cliche saying? “Buy low, sell high”. The bear is a pessimist, yes, but he/she is hoping they can wait until prices drop and buy at their possible lowest price and simply wait. The only time being a naysayer is a good thing.
Now which are you? A bull or a bear?