Value investors are always prepared to invest in a bear market. Why? Because it is in the bear market that they make maximum profits. You can learn it in the Stock market institute.
Generally, there is a fear of a bear market because the majority lose money during this time. But value investors consider falling market as an opportunity to make big money. People like Warren Buffett treat the bear market as a time to grab quality stocks at an undervalued price.
It is also true that investing during the bear market phase is daunting. In times when all prices are only falling, convincing self to invest in stocks is not east and you can go to a stock market institute. As a general rule, when the index falls in a short period by -20% or more, it can be termed as a bear market. In fact, due to the prevailing pessimism around, the index continues to crash incrementally every passing day.
OPPORTUNITY IN A BEAR MARKET | STOCK MARKET INSTITUTE
In a bear market the environment is of pessimism. There are more sellers of stocks than their buyers. The majority prefers to sell their holdings whenever the index starts to fall. This gradually builds a panic situation in the market. learn these in stock market institute.
It will not be wrong to say that stock-selling is a reflex action triggered by the bear market. know more in the stock market institute, People are drawn to selling to prevent further losses. This is understandable. Why? Because when the market crash, the numbers are daunting. In year 2008, SENSEX fell from 20,000 to 8,500 levels (down -57%). Such massive and often irrational price falls make prices undervalued and offer an opportunity for investors.