Most investors mistakenly assume that you make all of
your money during bull markets.
Not exact matches
During a
bull market, distribution days are often a sign of
money rotating out of extended names and into new stocks that are ready to launch higher.
Also, the new funds that we sold this year already made
money for us
during this
bull market.
Investing
during bull markets can be easy
money for diversified investors.
During bull markets it is easy to make
money and how easily we make
money makes us think we're smarter than we are.
Using the Mr.
Money Mustache Simple Math method, you'll mostly retire
during a
bull market, and often
during the last part of the
bull market, right before the peak and the next bear
market!
In the introductory text for Part I of their 2016 book, Adaptive Asset Allocation: Dynamic Global Porfolios to Profit in Good Times — and Bad, Adam Butler, Michael Philbrick and Rodrigo Gordillo state: ``... we have come to stand for something square and real, a true Iron Law of Wealth Management: We would rather lose half our clients
during a raging
bull market than half of our clients»
money during a vicious bear
market.
An inner voice tells us that it can not possibly be as easy to make
money in stocks as it appears to be
during wild
bull markets.
The traditional buy and hold / modern portfolio theory works great
during the roughly 17 year secular
bull market, as anyone can make
money when the overall trend is up.
One of our core beliefs is that making
money over time is more about protecting against locking in deep drawdowns than it is about squeezing out every ounce of upside
during bull markets.
How can this counterintuitive
money exodus transpire
during a
bull market?
Although professional traders can make
money whether the
market is going up or down, traditional long - term investors look forward to the long periods of time
during which
bull markets earn them
money.
During bull markets it is easy to make
money and how easily we make
money makes us think we're smarter than we are.
Typically the major frauds are uncovered or unmasked after the
markets decline, for example, Bernie Madoff or Enron, when investors need
money from other losses (and often these things have a Ponzi - like nature and can't finance themselves from a self - sustaining basis) or people simply begin to build back their sense of disbelief and begin to ask tough questions that they didn't ask
during the
bull market.
Many of today's investors swear by it not because they have considered the theoretical arguments pro and con and been convinced by the pro case but because they made
money during the
bull and attributed those gains not to the fact that stocks were priced well early in the
bull market but to the fact that they were following a Buy - and - Hold strategy at the time.
The only difference is where a smart investor puts their
money in a bear
market, or a down economy, as opposed to the choices of investment
during a
bull economy.
If you can break even or make
money on the shorts
during bull markets you should feel very lucky.