Bear or Bull Market

Bear or Bull Market

In today’s article “Bear or Bull Market,” we will discuss the volatile market trends of the last year. As we come full circle into mid-March 2021, we are able to look back at the events of the past year and the influence that they had on the markets. The past year has given us extreme ups and downs. A year ago marked the end of an era – the end of the longest bull market in history. Our bull market was propelled by the pandemic into a bear market – in which people lost their jobs, stocks tanked, and even the biggest, badest of companies struggled and feared for the future. Entire sectors of the U.S. economy seemed at risk of shutting down. Investors wondered how long it would take for the markets to recover. 

The market proved to one of extremes, dropping to a deep low during the bear market, and less than a year later, the bull reared its head again. The market rose from its lows to an all-time high for the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posted record highs at some point within the past year and seem to be creeping towards even higher highs in 2021. We are currently in a bull market and many investors are rejoicing with their gains from the past year. But the truth is, it wasn’t a gain for all investors. Some investors produced great numbers and took advantage of extreme levels of market volatility to come out on top. Others mourn 2020 as a terrible year that set them back substantially from their goals. What’s done is done and all investors can do is try to make smart choices with their portfolio regardless of whether it weakened or strengthened throughout the past year. Now, let’s turn our attention to what lies ahead. 

Will the pendulum swing of the market from last year continue throughout 2021? Will we dip into another bear market? Some investors believe so. They believe that the U.S. economy has not fully recovered from the strain of the pandemic and is only propped up by stimulus that will eventually run out sending the economy towards another bear market. Regardless of whether this is true or not, it does seem like the markets are becoming increasingly volatile – which can be a good thing for some investors and a terrible thing for others (as was shown by the infamous GameStop frenzy of 2021 and recent stock trends).

Investors need to think critically and pay attention to trends. It is vital, especially in this day and age of trading, to prepare for a volatile market. Each investor’s portfolio should be balanced and informed. Investors need to be proactive rather than reactive in order to make money in either a bear or bull market.

Don’t worry! You are not alone. We are here to help with hard data provided by our traders and an attentive client care team dedicated to helping our clients stay on top of their portfolio by working to achieve the equation for success – minimizing risk and maximizing gain. Be sure to check back into our blog, Instagram, Facebook, or Twitter for the latest market trends, market news, and insightful discussions about the investing world. If you have would like to learn more about what strategies we have to offer our clientele, feel free to visit our options, forex, index futures, and commodities strategy pages to learn more about why FFR’s strategies might be right for your portfolio. You can also reach out to one of our client care specialists directly by calling us at (800) 883-0524emailing us at [email protected], or filling out our contact form.

Above all, stay informed and practice proactive trading! Happy trading, everyone!

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