It seems that advised investors in this sample might well outperform self - directed investors on a raw basis
during bearish periods.
Moving some of your funds towards equities that will resist decline during
more bearish periods may provide some stability to your portfolio.
There was a bullish price action formed and it seems like the market sentiment improved after a
major bearish period.
When it comes to investing in the stock market, the risk that everybody talks about is the ups and particularly the downs,
the bearish periods when the market falls dramatically and keeps falling for months or even years.
Small - cap stocks outperformed the market in both
bearish periods, and although they beat the market during recovery periods, they did not deliver consistent or significant excess return in bullish periods
On average, they produced higher information ratios and a higher incidence of outperformance during recovery and
bearish periods.
If you've got the funds, entering the market during a correction or
bearish period may yield you good value for your money, especially when you take the long view.