bear market investing strategies? It’s official: we’re in a bear market. The recent crashes and market downturn have taken what was a 10+ year bull market into definitive bear market territory.
The current tone of the market is pessimistic — to put it mildly. If you turn on the news, it’s all doom and gloom: the markets are in a free-fall, everyone’s selling off positions, and everyone’s fearful about the future of the economy.
It’s understandable that many investors are wondering what to do and how to stay safe. In this
post, we’ll talk about what a bear market means for investors, and how fractalerts could help you stay ahead of the curve.
What is a Bear Market?
A bear market refers to market conditions where securities fall 20% or more from the recent highs. But it’s not a one-time drop. To be considered a bear market, the decline has to hold for a sustained period of time — usually 2 months or more, but that can vary depending on the source.
It’s usually measured by major indices like the Dow Jones Industrial Average and the S&P 500. Note: not sure what an index is, much less indices? Check out this post.
It’s the depth of the drop and the amount of time that it lasts that differentiates a bear market from another market phenomenon known as a market correction.
A bear market can last anywhere from weeks to months to years. The good news? Typically, bear markets don’t last as long as bull markets.
During a bear market, the general mood is pessimistic. Investors believe prices are going to go down, and people tend to be stingy with their money … Which can have the effect of keeping the bear market going!
Past Bear Markets
While the market just officially descended into bear market territory, it’s flirted with it in the recent past. In December 2018, prices were extremely close to veering into bear market territory, but didn’t last long enough to make the call.
The last official and prolonged bear market happened between 2007-2009 during the 2007-2008 financial crisis, and lasted for about 17 months, during which the S&P lost about 50% of its value.
Bear market investing strategies?
Right about now, you might be thinking it sounds like a pretty good idea to make like a bear and hibernate for a good long while, til the markets make a rebound.
But don’t worry, because in spite of the fact that the market is trending downward, there is good news.
There are always bear market investing strategies for traders and investors, regardless of the market conditions. It’s a matter of being able to adapt to the current market and adjusting your strategy accordingly.
For some investors, sure — that might mean hiding out and hibernating while you wait for long term investments to round the corner.
But there will always be some sectors or companies that will experience growth, even during times of economic downturn.
fractalerts can help you find these opportunities.
The service works by scouring through massive amounts of market data, including price action, momentum volume, time, and more. A proprietary algorithm processes the data to create complex matrices that can help figure out patterns among what would otherwise seem like madness.
When a pattern is found that finds a promising trade, it triggers an alert. But unlike the average alert system, these alerts are indicative of actual trades that the fractalerts team is intending to execute, 12-24 hours ahead of the trade. This gives subscribers a chance to get the news, digest, and react in their own chosen way.
It used to be that fractalerts was available to only a select few, on a by-invitation basis. But now, it’s open to even individual investors … Including you!
Best of all, these alerts are appropriate for bear markets, too.
fractalerts in Past Bear Markets
For more than a decade, fractalerts has been delivering up to 28.30% per week to a small group of BIG investors.
Yep: that includes the time period during the last financial crisis!
fractalerts was just getting up and running during the last financial crisis, and delivered steady gains even during that scary and trying time.
So what’s the secret? No secret. Just math and science.
Remember: these alerts are based on systematic, unemotional calculations that predict market behavior with near certainty. They’re not scared of market crashes, and they’re not making emotional decisions.
This is a system that has consistently outperformed the Russell 2000, the Dow Jones Industrial Average, and the S&P 500.
By removing emotions from the equation and focusing on cold, hard data and mathematical calculations, the results are far more reliable than even the smartest trader could possibly hope to achieve on their own.
Ready to Try fractalerts?
Are you ready to sample the system that global banks and fund managers have come to rely on?
fractalerts finds patterns that can be applied to any type of market condition — whether it’s an upbeat bull market or a depressed bear market. This means that you’ll be alerted to trades with strong potential no matter what’s going on in the world or how many points the Dow is up or down.
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