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Have you heard the terms bull market and bear market? Do you know what they mean? Today I will talk about what they are and how to invest during both.

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-----Contents of this video-------------------------

0:00 - Intro

0:20 - Bull Market

0:58 - Why is it called the Bull Market?

1:20 - When are the Bull Markets taking place? 

1:37 - Bear Market

2:22 - Why is it called the Bear Market?

2:47 - Bonus: How do I invest during both?

3:02 - Maintain a long term focus

3:13 - My Unique Strategy

4:06 - Share, Like, Subscribe

4:17 - Watch this next

Bull
Broadly speaking, a bull market is a continuous period -- usually years -- when stock prices rise. Many theories out there say that it has to rise at least 20% from recent market lows which would have been a bear market. A bull market could happen for an individual stock or for the entire market. Investors usually can tell when we enter a bull market, by tracking the world’s major indexes like the S&P 500, dow jones and so forth. 

According to research from Invesco: Historically, the average length of a bull market = ~5 years and the average gain is about +180%. 

Bull Markets happen during periods when the economy is strong or strengthening. They are often propelled by GDP growth, falling unemployment, and rising companies's profits.

Bear
A bear market is a prolonged period of price declines in a single stock or entire market, usually 20 percent or more from a recent high. A bear market could happen for an individual stock or for the entire market. Investors can tell when we enter a bear market, by tracking the world’s major indexes like the S&P 500, Dow Jones and so forth. 

The bear market largely indicates that investors are starting to pull back. This is where more people are selling than buying. It often occurs just before or after the economy moves into a recession. Investors carefully watch key economic signals — hiring, wage growth, inflation and interest rates — to judge when the economy is slowing down. 

According to research from Invesco: Historically, the average length of a bear market = ~ about 1 year (11 months) and the average loss = ~ -36%.

Bonus
How do I invest during a bull market and also during a bear market?
Regardless of what the market is doing, I maintain a long-term focus to cultivate long-term wealth. I constantly invest in the market, every single month. One thing that I do that is different, is in addition to maintaining my emergency fund in cash like investments, I also put a small amount in savings so it can be invested during bear markets. When the bear market comes around, I still invest as normal, but now, I also deploy the extra cash that I have accumulated in savings during the bull market.

My wife and I wrote the book: “LIFE LESSONS: From A Wiser Me to A Younger Me” In this book, we go into details of what were the biggest lessons we have learned up until now. Our intention for writing the book was for people to learn from it and not repeat the same mistakes we did. Also what we have learned in 10, 20 years, could be compressed in a few days of you reading the book. So there is a lot to gain :)

*None of this content is meant to be interpreted as investment advice. It is for entertainment purposes only. The content in the video is accurate as of the day of the posting and may not be accurate in the future.