Bear Markets Are The Greatest Buying Opportunities. Here’s why
September 07 2022 - 3:28AM
NEWSBTC
Crypto analysts and researchers explain the bear market as a period
in which supply exceeds demand, morale falls, and prices decrease.
As such, a bear market is a market that has experienced consistent
or significant falls. A bear market is defined as any stock index
or specific stock that has declined by at least twenty percent from
its most recent high. As depicted here, “consistent falls” or
declines refer to lengthy durations of downward oscillations.
Ideally, markets are volatile on a daily (or even moment-to-moment)
basis. Various factors can cause bearish markets, including weak or
lagging economies, geopolitical crises, wars, and pandemics.
Meanwhile, low employment, which can result from significant
economic paradigm shifts, low discretionary income and low
productivity, are all manifestations of a weak or deteriorating
economy. Aside from a 20% drop in stock prices, the bear market
condition is where investors frequently feel worried and depressed,
and the country’s economic outlook is not always favorable. It is,
however, important to note that, while a bear market may indicate a
decline in stock prices and possibly a failing economy, it is also
an ideal time for new investors to enter the market and start
building their portfolios. From analysis and predictions, coins are
expected to have a bumpy ride ahead, implying that it will be some
time before they pay off. Therefore, new investors must enter the
market to invest long-term. After all, investing is a long game,
and by leaving your money in the market for a while, you will have
more time to recover from any losses; these short-term dips will
not necessarily set you back in the long run. The words “bear
market” frighten many investors. However, these severe market
downturns are unavoidable and frequently quite brief, especially
when contrasted to the duration of bull markets, when the market is
gaining in value. Bear markets, on the other hand, offer excellent
investing possibilities. The co-founder of Philcoin, Dunstan Teo,
stated: “Human psychology is a fascinating thing. When retail
stores offer sale prices, people flock to buy items at lower
prices. Yet, in a bear market, when assets are discounted, people
are afraid to buy. There’s no reason to feel anxious or worried
during the bear market – it offers a fantastic buying opportunity
and, as we know from historical charts, the markets always rebound
which is where, and how, your assets will increase in value.”
Buying stocks at a discount during a down market is often
favorable, making it a lower starting point for those who have
previously eschewed investing. The term “buying the dip” refers to
a classic investing strategy that entails selling when everyone
else is buying and, in this example, purchasing when everyone else
is selling. What does the bear market situation bring to your
investment table? In a bearish market, cryptos are generally
cheaper than ever, providing opportunities for people to buy their
desired crypto at a discounted price. We take as an example
Philcoin, described as the ‘People’s Coin’, a scalable
technological solution that meets established international
development standards in its core purpose. With a total supply of 5
billion and the current circulating maximum supply of 0, Philcoin
(PHL) has its price at $0.056886 per PHL at the time of writing.
Its market is currently bearish. Suppose you purchased PHL at the
current price of $0.056886 and held the coins through the bear
market, and then sold it at any indication of a positive market.
You recoup the loss earlier recorded during the “dip” and also
utilize it in reducing any taxable gains in other areas of your
portfolio where you made money. Experts refer to this situation as
tax-loss harvesting. As portrayed above, albeit it is paradoxical
to invest when so many people are talking about the difficulties
facing the economy, bear markets can be the best resort because
prices have significantly decreased, allowing you to obtain more
value for your money. Teo says: “What’s important is for people to
always remember their long-term goal. Is it for financial
independence? To provide a better life for your family? To buy a
home or car? Whatever your goal, remember the highs and lows of the
markets are part of its cycle. A buy and HODL strategy is not only
one that works – but one that also allows us to go about our lives
without being distracted by the short-term movements in the
markets.” One of the many reasons why the bear market shouldn’t
pose a great deal is that, as an investor, you can better regulate
your emotions by introducing time zones because you know the market
will recover after a dip. Short-term funds can be invested more
prudently and will not fluctuate as much as the stock market. Money
needed in the long run can be invested more aggressively. Even
though this money may lose the most, it will have more time to
recover losses. In addition, You will have a better grasp of risk
tolerance and thus, become a more consistent and reliable investor.
As an investor, consistency means giving your investments time to
grow. If you invest when the market is up, you will quickly learn
that market timing is a losing proposition. You may be fortunate at
times, but you frequently miss the mark. Investing in a negative
market, on the other hand, will not only make you more consistent
but will also increase your overall returns.
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