Navigating the Bear Market

Have you ever wondered why the financial markets keep going up and down? The past few weeks and months have been incredibly volatile.

As at the time of writing this article, recent statistics from the financial market shows that:

• S&P 500 down by 16% YTD
• Nasdaq down by 26% YTD
• Bitcoin down by 39% YTD

Most investors have resorted to liquidating their positions as the FUD (Fear, Uncertainty & Doubt) continues to spread. Everything is in the red, but by the end of this short article you will no longer see that as a problem, you will see it as an opportunity.

“Downturns can feel scary, but it creates opportunity for those who are prepared mentally and financially” — Dr Hans

The big questions on the minds of many investors are:

• Will inflation rates continue to rise?
• Will the Fed continue to increase interest rates?
• Will current market conditions force companies to layoff employees?
• Will the economy enter a new recession?

Let’s take some time to break down what a bear market really means:

Experts talking about the state of the economy and financial markets use the terms “bear” and “bull” market frequently to describe how investors are feeling about economic outlook.

What does a bear market mean?

A “bear market” means things are going down as opposed to a “bull market” which signifies an uptrend. We get these terms from the way these animals attack — a bear swipes its claws downward, and a bull thrusts its horns upward. Investors might have a “bearish” sentiment when they feel like a downturn is imminent.

A bear market is considered an important barometer of investor pessimism and is symbolic of a deep and sustained market selloff. It is defined as a period in which either a stock or market index drops by an average of 20% or more from a recent high point.

Possible causes of a bear market:

A market downturn could happen as a result of a number of factors;

• Rising inflation
• Rising interest rates
• General decline in consumer spending
• Global Crisis

How long does a bear market last?

This is relative to the prevailing circumstance surrounding the financial market downturn. On average (since WWII), bear markets have taken about 13 months to set in and 27 months to recover.

This however isn’t always the case. Back in February 19, 2020, through March 23, 2020, the S&P 500 Index fell 34% in that one-month period. This is the shortest bear market ever recorded.

Is it good to buy in a bear market?

A bear market can be an opportunity to buy more assets at cheaper prices.

“Market crashes are one of the BEST times to invest. Smart investors with capital have a tremendous opportunity to build wealth by diversifying their investments and choosing the right assets” — Dr Hans

This is why financial literacy is vital. It goes beyond having extra capital and randomly throwing it into various asset classes emotionally and without diligent research. When the market presents a buying opportunity at a significant discount, it is important for investors to recognize the time to buy and intelligently position themselves to take minimal risk.

Dr. Hans, The Investing Tutor, created a Stock and Crypto Market Recovery Seminar to educate our community about what is really happening with the current market downturn, what critical investment decisions he is making, as well as the stocks, cryptocurrencies and NFTs that he plans to buy during this opportunity to build generational wealth.

This one-hour seminar is scheduled to be held on May 28, 2022 2PM EST and would normally cost $250, but is FREE for all holders of a Royals NFT.

About Our Founder, Dr Hans Boateng

Over the past 12 years, Dr Hans Boateng (Founder of the Royals NFT) has been educating his community about personal finance and investing in stocks, cryptocurrency and most recently, NFTs.

On March 25, 2022, Dr Hans launched The Royals NFT which is focused on celebrating diverse cultures across the globe and creating opportunities for our holders (the Royal Family).

In addition to gaining FREE access to the financial seminar above, this first collection celebrates the Ghanaian culture and includes a ticket to the inaugural Royal Gala this December in Ghana, a curated travel concierge service, and access to exclusive networking events held globally.

If that isn’t enough, Dr. Hans is also hosting an exclusive Royal Legacy Workshop only open to our Royal Family members (NFT holders) — included for FREE as well. Education is a core component of our NFT project.

If you’d like to join the Royal Family and gain access to these educational resources, kindly go ahead and visit The Royals Official Website to mint using your metamask wallet or buy with a card.

Once you’re done minting, you can Click Here to join our community and gain access to the seminar.

Conclusion

Since the inception of the financial market, it has always experienced turbulence from time to time. During this period, new investors usually make the most mistakes while the financially literate build incredible wealth during the next bull market run.

As a family, we want to see you win — please feel free to share this article with someone that needs to learn about these strategies.

See you in the Royal Family!

Written by Victor Owunna, Communications Manager of The Royals