TEMPLE, Texas — “Bull market” versus “Bear Market.” When should you invest?
We have a very different market now than we had in 2019. So, for this “Money Talks,” we talk about the difference and we discuss taking the emotion out.
Have you been on the sidelines of investing for the past 2 years, just waiting for a better time to invest?
2022 was the worst year for the stock market since 2008. We had a very long “Bull Market” running up to it. But remember the market has come back 100% of the time to its highest levels and has then gone higher.
The question is, when will that happen?
We asked Financial Planner Rolandus Johnson. He told 6 News, "I’'ll start by saying this. There is no bad time to be in the market. Even when you retire or you know whatever your goal is, you're still going to have money in the market whether it's an up market which we call a “Bull Market” or a down market which we call a “Bear.” You're still going to have money there because you want your money to last. And that's the best place for it to last."
The market is volatile and you can lose money. But you only lock in those losses when you sell.
"I honestly me personally, I think that you can have great success in either market. In a “Bear Market” of course, costs are down, you are buying more shares which is the name of the game and you want to have as many shares as possible and in the “Bull Market” everything looks great because all of the values are up and your personal value of assets is up," Johnson said.
Since none of us have a crystal ball and we have no idea what the future brings, we make smart educated guesses and we try and make wise investments, but trying to time when to get in or out of the market is near impossible, it's much better to flow with it.
“Rojo” explains, "A lot of the time before the news hits the average person like you and I, the window has already closed right? If you're trying to hit big you know there was a couple of times back like, we call them the meme stocks now like they are coined like Gamestop and Blackberry and all of those things so like by the time we got wind of it the wave had already passed."
And those of us in the media are guilty of hyping up a bull market and condoning a “Bear Market,” when the truth really is, you belong invested in the market over as long of a period of time as you can!
Johnson told 6 News, “It's consistency, the media does a very good job of playing on emotion and they get people to trigger and cause action so they take action when they necessarily shouldn't do anything and just kind of ride the wave and continue doing what you are already doing."
There have been 27 “Bear Markets” in the S&P 500 Index since 1928. However, there have also been 27 “Bull Markets” — and stocks have risen significantly over the long term.
Also on KCENTV.com: