On the other hand, if the money is left in, the investor stands to realize significant losses.īut how do you win in a bear market? Through the use of safe-haven investments. If they take their money out of the market, their dollars aren’t making any return. It’s at these times that many beginning investors are left with a bit of a conundrum. At the same time, downward pressure from the bears starts to take hold, pushing the market into what’s known as a bear market.ĭuring a bear market, significant declines are experienced. As such, these investors hesitate to open positions or add to current positions. After a bull run, high valuations nearing or at resistance lead to fear among investors. Stock values rise, and investors on the bullish side start to count their profits.Įvery once in a while, the bears take hold. When the bulls outpace the bears, the market is considered to be a bull market.

On the other side of the coin, bears - those who expect declines in the values of securities - are selling assets. On one side, the bulls - investors who believe securities will rise - are buying assets, hoping to bank on the growth.

What is safe money