Bear or Bull? The Guide to Investing Successfully

“Oh no! The market has dropped quite a lot! Should I sell off my investment to avoid further losses?“

If you have the same concern, no worries.  This is because you are not alone. In fact, this is a common concern from investors when seeing their investment value drop significantly during a declined stock market or better known as a bearish market .

 So what should we (investors) do instead?

 We would suggest first staying calm, being composed, and getting to know the facts right.

Next, do understand that unless we invest with borrowed money, we aren’t losing just because the market value of our investment dropped.

For example, let’s say we bought  a house in Penang Island at the value of RM 400K and 3 years later due to some reason the market value of the property dropped to only RM 300K.

In this case, are we losing out ?

The answer is NO.  This is because we didn’t sell off our property and instead we are still enjoying it. Whether we live in the property or we are still receiving rental income from it monthly, we are not losing out. The person will only suffer actual loss when he/she sells the property at a price much lower than that when he/she purchased it.

The good news is, what went down will rise. Eventually, the price of the investment will rise, For Sure!

 When we refer to the history of the U.S. stock market, the longest bearish market was around 1930 (92 years ago) when it lasted for 2.8 years. After that, the market recovers and continues growing for another 14 years (1930 to 1944) with an accumulative total return of 815%!!

Just imagine if the pessimistic-driven investors sold off their investments during that bear market in the 1930s…  They suffered a huge loss when they could have made HUGE profits just by holding on a little longer!

“In the short run, a market is a voting machine but in the long run it is a weighing machine.” – Quote from Mr. Benjamin Graham a.k.a father of value investing.

Therefore, this time we have created a short video to help all investors to know more about stock/equity investments and understand the right things to do especially during a bearish market.

 At the end of this video, you will know the difference between a bear and bull market and 4 ways to deal with a declined (Bear) market.

 Feel free to reach out to us if you need our help, we are more than happy to help.