No more Bull. I can't Bear it!
Bull markets. Bear markets. We’ve all heard about them. By strict industry definition: a bear market is when the market exhibits a down trend of 20% from its high. And by the same standard, a bull market exhibits a strong up trend.
The problem with the talking head definitions is that, by the time the gurus on CNBC and other media issue their proclamations of a bear market, your portfolio may already be devastated by a loss of 20% or more. So, waiting around for the “experts” to tell you whether it’s a bull or bear market is just... well... bull.
A more productive method of looking at the market is whether it is at a high-risk or low-risk level. When the market is at a high-risk level, you must be very cautious when investing, regardless of the overall market trend (up or down). Today, the market is at a very high-risk level.
So, what exactly makes markets go up or down? What determines how risky a market is? How can you adjust your portfolio to protect yourself? How can you preserve your capital? Portfolio Bunny will be back with answers to these and many more questions... so, stay tuned.
