With a sufficiently long holding period pre-crash investments catch up to the long term average. Having said that, many fortunes have been made by those who bought good stocks at steep discounts at the trough of a stock market crash. So, should you invest in a bull or a bear market? https://youtu.be/1r5ADwWR6_c

1. By: www.ProfitableInvestingTips.com

2. For the vast majority of people, the US stock market
is the best readily available generator of
investment profits. A classic example has to do with
if you invested just before a stock market crash. As
a rule, if you stayed the course and stayed invested
for years or decades, your investments would do
just fine.

3. With a sufficiently long holding period, pre-crash
investments catch up to the long term average.
Having said that, many fortunes have been made by
those who bought good stocks at steep discounts at
the trough of a stock market crash. So, should you
invest in a bull or a bear market?

4. What Do You Do With Money You Have to Invest?

5. So, you inherited a healthy sum of money and you
want to put it to work for you. You have a decent
job or business that you are not going to expand.
Thus, your investment will be in stocks, bonds, or
maybe real estate. Alternatively, you are able to
put aside money from every paycheck for
retirement, college for the kids, or to start that
business of your own. Should you invest in a bull or
a bear market? If you put off your investment for
the right time, what do you do with the money?

7. Are You Able to Time the Market?

8. According to CFRA Research the stock market
bottoms out on average five months before the end
of a recession. So, on average, your best time to
put money into a mix of stocks would be a few
months before a recession is over. Unfortunately,
timing the end of a recession can be as difficult as
timing when they have begun. When markets fall
they go down due to fundamental reasons like
profits falling.

9. And they go down because investors sell their stocks
to avoid losses. Panic selling often happens in a
sharp market downturn. When fundamentals have
stabilized, profits are starting to reappear, and
market sentiment turns positive, stocks tend to
head upward. This is often an ideal time to
purchase stocks with good growth potential and
strong intrinsic stock value.

10. But what do you do with your money while you wait?
Does this mean you should not buy stocks in a rising
market or a flat market? It does mean that you
need to be careful of getting into a rising stock
market just before the top when fundamentals have
been exhausted and fear of missing out is the only
thing taking the market higher.

11. When to Buy in Bull and Bear Markets

12. If you are investing for the long term you can rely on
decades of evidence that the market keeps going up
over time. You do not need to sit on cash for years
while the market goes up in fear of a crash. And
you do not need to perfectly time a market bottom
to make money. A commonly used approach to long
term investing is called dollar cost averaging.

13. With this approach an investor chooses a sum or
money and a timing schedule such as every
paycheck, every month, quarterly, etc. He or she
chooses a mix of growth and value stocks and even
bonds. Then he or she puts the same amount of
money into those investments every time. As the
market goes up the investor will not be tempted to
invest too much just before a crash. When the
market falls the investor will be able to buy good
long term investments at substantial discounts.

14. For more insights and useful information about
investments and investing, visit
www.ProfitableInvestingTips.com.