MoneyMondays: What Actually is... Bear And Bull Market
This is for the woman who has heard the words "bull market" and "bear market" and smiled and nodded while internally thinking that sounds like a nature documentary not a financial strategy. Valid. Today we fix that. And I promise it's more fun than it sounds.
Not just what it is. But why it matters. And what to do about it. Because understanding this can save you thousands and make you millions.
Do You Feel Like..
The stock market is just chaos and vibes? Like one day it's up, one day it's down, and nobody actually knows anything? I felt that way too. Until I realized the market isn't random: it runs in cycles. Predictable ones. And once you can read the room, you stop panicking every time CNBC uses a scary font. The market has a mood. And like any mood: once you understand where it's coming from, you know how to respond.
Bull vs. Bear — What They Actually Mean
A bull market is when the stock market is going up. Prices are rising. Investors are confident. Money is moving. The economy is growing. Everyone is feeling themselves. Think of it like the main character era of the stock market. Things are good. People are buying. Businesses are expanding. The party is on.
A bear market is the opposite. Think hybernation. Prices are falling. Usually at least 20% from their recent high. Investors are scared. People are selling. The vibe is very much, as Tiger King's Joe Exotic would say, I'll never financially recover from this. Bear markets feel terrible when you're in one. They also happen to be some of the best buying opportunities of your financial life. More on that in a second.
Here is the key thing to understand. Both are normal. Both are temporary. The market has gone through dozens of bull and bear cycles and every single time, every single time, it has come back higher than it was before. The Dow Jones was at 800 in 1982. It is over 40,000 today. Every bear market in history has eventually turned into a bull market. The people who built wealth were the ones who didn't panic and sell when it got ugly.
Think of it like your favorite lip liner going out of stock. It feels devastating in the moment. You go through the stages of grief. And they fix the supply chain and it comes back and it's even better. That's the market.
Why This Matters
Hustle culture wants you reactive. Checking your portfolio every day. Panicking at every dip. Making emotional decisions with your money. That's not investing it's gambling with extra steps.
Understanding cycles means you zoom out. You stop asking "is the market up today" and start asking "where are we in the cycle." That shift in thinking is everything.
I reference all the time that being in the market is like going to the gym. When you're there everyday and you know you're going to be there rain or shine it you're building your muscles. The pain is worth the gain.
When you're paying attention to the cycles, not the hype and the news, but the cycles of the market you're building the muscle. So when it does dip and we see a bear you're able to swoop and buy on sale. Think Black Friday early 2000s, when the deals were real.
Rule of thumb:
Bull market: stay invested. Let your money ride.
Bear market: don't sell in a panic. If you can, buy more. You are literally shopping for assets on sale.
The investors who win are the ones who understand that the bear market is not the end of the story. It's just intermission.
You're an absolute queen. Read the room. Then invest accordingly.
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