Which is better, bear market or bull market? Why do you suggest investing in a bear market?

Compared with bull market and bear market, I prefer bull market, but I know that the four seasons change and bear market is inevitable, so I accept bear market frankly, but I won't like bear market "more". Of course, the advantage of a bear market is that the stock price can fall to a very low level. There are two problems: you don't know when the bottom is, and you think the bottom is usually halfway up the mountain; The second question is whether you can afford to buy these cheap assets. Bear market is impossible to make a profit, and making money may require a bull market; Therefore, the bear market gives you a low-cost opportunity; The real profit is a bull market. Therefore, I prefer bull market!

I am afraid when others are greedy, and I am greedy when others are afraid! I believe many people have heard this sentence. This sentence does not mean that I am afraid when the market is good, nor that I am happy when the market is bad. Its original intention is to warn everyone that when the market falls sharply, it often indicates the formation of big opportunities. An old saying in China is "extremes meet". For the latest example, when the epidemic began in early 2020, global stock markets plunged, and China stock market was no exception. However, at this time, some top investors took a fancy to this opportunity and entered a heavy position. Later, everyone saw the market and ushered in a magnificent market. Many people make a lot of money.

Why are top investors better at seizing opportunities in a bear market, but not retail investors? We can look at the trading habits of retail investors first. Most retail investors like short-term trading, with a small pattern and a habit of chasing up and down, which is why retail investors are easy to be quilted or even cut meat. Top institutional investors and individual investors have a bigger model, investment period and long-term vision. In the bear market of the stock market, many retail investors can't stand the pain and often choose to cut meat. This is a good opportunity for top investors to open positions. Chips are cheap and easily available. Before the market came, top investors made money. This part of the chip likes to chase retail investors, so it circulates.

Therefore, it is not the top investors who like the bear market, but the retail investors who hate it more. Bear market and bull market are like two completely opposite places: bear market is empty and bull market is crowded. But in a shabby room, another guest is drinking alone. On the other side of the busy place, there may be several fools mixed in the crowd. This is why the real top investors prefer the bear market, because one feels really great in the world. You can calm down and invest quietly without external interference. The most direct factor affecting the stock price is the company's profit. Companies make more money, pay more dividends, and stocks are more valuable. In China A, the important factors affecting the stock price performance are policies and news, followed by the flow of funds. This raises a question: there will be more uncertainty in the bull market.