Bull or Bear?
As you know, there are two types of long-term market situations: Bull markets and bear markets. But the whole “bull vs bear” concept can also be used to describe two types of investor sentiment. Bulls are investors who have a positive, or “bullish,” view of where the markets are headed. Bears, meanwhile, generally have negative, or “bearish” expectations.
If you watch a video on YouTube regarding the “bull vs. bear” concept and then read the comments, you may notice how many people like to say “First.” In our experience, a lot of investors – be they Bulls or Bears stress over “getting ahead” or “being first,” and as a result, they overreact to the slightest provocations.
At RMR Wealth Advisors, we don't worry about being first. We only care about moving you forward. That’s why we focus on one thing: Investing for the long term without trying to guess whether the Bulls or the Bears will dominate. That means positioning your accounts to take advantage of bull markets while being prepared – mentally and financially – for bear markets.
Historically, an improving economy leads to a stronger stock market. If that happens in 2021, wonderful! But if interest rate fears worsen and volatility goes up, experience has taught us not to overreact. We’re not investing for next week, or next month, or next quarter. We’re investing for years. Any general rise in prices is likely to be temporary, just as any bouts of volatility are temporary, too.
It’s been a year since the pandemic began. A year since some of the worst market turmoil in a long time. We got through that by being disciplined and patient, and that’s what we’ll continue to do. Others can worry about being a Bull, or a Bear, or “first.” We’ll just continue being disciplined and patient.
If you have any questions or concerns about the market, please feel free to contact us.