The Wisdom of Investing in the U.S. Stock Market During a Bear Market
When a bear market arrives, the market resembles a low-pressure sea surface, appearing gloomy, yet it is the best time to test a ship's stability. Many people's first reaction is anxiety, as their accounts shrink day by day, news updates constantly refresh, and emotions fluctuate along with it. However, those who have truly experienced several cycles often slow down during these times and take another look at their direction.
I have a friend who, when the market began to fluctuate last year, did not immediately increase his holdings or liquidate them; instead, he pulled out his positions and examined each one. He discovered that most of the stocks he held were high-volatility growth stocks, which rose quickly but also fell sharply. So he began to gradually shift his portfolio, allocating some funds towards consumer, utility, and healthcare sectors.
He said that the biggest change during that time was not in returns, but in his mindset. No matter how much the market sways, demand remains constant. People still need to eat, use electricity, and see doctors when they get sick; these industries flow more like a slowly moving river, and won't suddenly dry up.
Later, he started using a simpler method, dividing his funds into several portions and investing slowly over time without trying to guess the bottom. When prices rose, he bought a little; when they fell, he bought more. Over time, the cost naturally leveled out. The pressure of having to judge right from wrong every day gradually disappeared.
For many people, the real challenge is not choosing which stock to buy, but how to maintain a consistent rhythm over the long term. Especially when dealing with cross-border funds, the more complex the steps, the more likely people are to procrastinate. At one point, to facilitate regular investments, he even found a tool to simplify fund management and conversion processes. Eventually, he got used to it and would occasionally check market conditions to decide whether to continue trading U.S. stocks. That tool is BiyaPay.
A bear market is more like a sieve, filtering out short-term emotions and leaving behind what can truly endure over the long term. Defensive sectors may not be the place to get rich quickly, but they serve as a cushion for many during times of trough. Coupled with regular investments and rebalancing, the portfolio resembles a structure with shock absorption, preventing it from being scattered by a single fluctuation.
By the time the market truly warms up, many opportunities may have already quietly emerged. It's just that at that time, those who can see them are often the ones who maintained patience during the trough.
When a bear market arrives, the market resembles a low-pressure sea surface, appearing gloomy, yet it is the best time to test a ship's stability. Many people's first reaction is anxiety, as their accounts shrink day by day, news updates constantly refresh, and emotions fluctuate along with it. However, those who have truly experienced several cycles often slow down during these times and take another look at their direction.
I have a friend who, when the market began to fluctuate last year, did not immediately increase his holdings or liquidate them; instead, he pulled out his positions and examined each one. He discovered that most of the stocks he held were high-volatility growth stocks, which rose quickly but also fell sharply. So he began to gradually shift his portfolio, allocating some funds towards consumer, utility, and healthcare sectors.
He said that the biggest change during that time was not in returns, but in his mindset. No matter how much the market sways, demand remains constant. People still need to eat, use electricity, and see doctors when they get sick; these industries flow more like a slowly moving river, and won't suddenly dry up.
Later, he started using a simpler method, dividing his funds into several portions and investing slowly over time without trying to guess the bottom. When prices rose, he bought a little; when they fell, he bought more. Over time, the cost naturally leveled out. The pressure of having to judge right from wrong every day gradually disappeared.
For many people, the real challenge is not choosing which stock to buy, but how to maintain a consistent rhythm over the long term. Especially when dealing with cross-border funds, the more complex the steps, the more likely people are to procrastinate. At one point, to facilitate regular investments, he even found a tool to simplify fund management and conversion processes. Eventually, he got used to it and would occasionally check market conditions to decide whether to continue trading U.S. stocks. That tool is BiyaPay.
A bear market is more like a sieve, filtering out short-term emotions and leaving behind what can truly endure over the long term. Defensive sectors may not be the place to get rich quickly, but they serve as a cushion for many during times of trough. Coupled with regular investments and rebalancing, the portfolio resembles a structure with shock absorption, preventing it from being scattered by a single fluctuation.
By the time the market truly warms up, many opportunities may have already quietly emerged. It's just that at that time, those who can see them are often the ones who maintained patience during the trough.