#bearmarket

✍️ What is a Bear Market?

A bear market is a period of time in which financial markets experience a sustained decline in prices, typically by 20% or more from their recent highs, and lasts for a relatively long time.

- Common causes of a bear market:

- Economic recession or slowing growth.

- Rising interest rates from central banks.

- Geopolitical crises or global disasters.

- Decreased investor confidence and the spread of fear (FUD).

- Characteristics of a bear market:

- Dominance of fear and pessimism in traders' behavior.

- Mass selling of assets, often at a loss.

- Opportunities for long-term investors to buy assets at low prices.

- Increased search for safe-haven assets such as gold or the dollar.

- How to deal with a bear market?

1. Don’t make emotional decisions.

2. Review your investment strategy.

3. Keep liquidity or invest gradually.

4. Learn from the past – markets always go through cycles.

5. Take advantage of opportunities to accumulate strong assets at a low price.

✍️ A bear market is not the end of the world, but a natural part of the market cycle. The important thing is to be mentally and strategically prepared to get through it.