Really? A bear market can be a good thing? Sure! For several reasons. Let me show you . . .
1) A bear market gives many chances for profits
2) A bear market gives stocks a chance to show bargains
3) Many people get scared of the bear, leaving it all to you
A bear market gives many chances for profits
Here's the thing. Stocks drop faster than they go up. They really do. So, you have great opportunities for profits. On of my favorite things is to look for really weak, troubled companies and buy long term puts on them.
You see, in a bear market, a company that is weak, is going to drop even faster. The put keeps your risk small (just the cost of the put, far less than the price of the stock), and it gives you great leverage.
A bear market gives stocks a chance to show bargains
Over time, stock prices get too high (yes, that really can happen). We need the bear market kind of like a cleansing process. It cleans out the market and resets the prices so we can find bargains.
You see even the good companies prices will drop some. The market pulls everything down.
Many people get scared of the bear, leaving it all to you
The bear scares people. These are people who don't really know investing or trading. They have no idea. They just want to buy stocks are get rich. They will run from these kinds of markets.
And that gives you great opportunities, because they are mostly just for you. Less competition.
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Source: www.isnare.com
