Who will win in the bear market: bear or bull?

Share an interesting writeup about bulls vs bears in a bear market. 🤓

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However, the reality is quite different: Bullish and bearish investors both tend to lose money in bear markets.

The reason is volatility.

Stocks typically experience sharper and more frequent swings – up and down – in bear markets than in bull markets. In fact, history's largest single-day gains and single-day declines have all occurred in bear markets.

These moves are remarkably efficient at getting most investors to do exactly the wrong thing at the wrong time.

The big rallies convince most folks that the worst is over and a new bull market is underway. Bearish investors "throw in the towel" and cover their short positions, while bullish investors succumb to fear of missing out (FOMO) and rush back into stocks, just before the next decline begins.

Likewise, the big declines often convince most bullish investors to panic and sell – and most bearish investors to "double down" on their short positions – just before another sharp rally begins.

These cycles can play out again and again before the bear market finally ends, creating uncertainty – and significant losses – for bullish and bearish investors alike.

If you hope to profit from these moves, you must be willing to be a "contrarian" and take profits quickly. That means buying when stocks are oversold and most investors are fearful, and selling when stocks are overbought and most investors are greedy.

But even then, you'll need plenty of emotional discipline – and probably a little luck – to be successful.