The bear market in the stock market is the most stable market, so everyone thinks that the bear market is an unprofitable market, because all kinds of stocks in the bear market are in a downward channel. In this case, we are more cautious when buying stocks. Here at Investing Experts, we'll continue to buy potential stocks in bear markets. A bear market is the best time to position and buy potential stocks. As long as you find a potential stock, you will absorb your ideas and buy the potential stock in a fixed way. When the bull market comes, you can sell in one fell swoop, so that you can make money in the stock market. The pace of the stock market must be precise. Bear markets are the safest and most stable markets. Many bear market stocks have potential, and because a bear market is falling, some stocks will fall below their true price.

If the stock market falls below the true price of the stock, this is the most critical thing for the stock. However, many people only know how to make quick money in the stock market. Everyone does not like the bear market and mistakenly believe that the bear market is an unprofitable market. Figure market. When doing stocks, you need to plan in a bear market, buy your potential stocks, and then wait for the bull market to sell them all. Generally speaking, a bear market is caused by the pessimistic sentiment of the market public, which causes the price-to-earnings ratio to drop significantly in a short period of time. We all know that stock price (P) = price-to-earnings ratio (P/E) * earnings per share (EPS). Multiply both sides of the formula by the total equity to get the company's market value = price-to-earnings ratio * net profit. It can be seen from this formula that due to the sharp decline in the P/E ratio, the company is still the same in the bear market, and the business or product is still the product, and there is no change in a short period of time. Doesn’t this amount to a discount at which the market is selling these companies to us?

We think in reverse, yes, everything should be thought in reverse. If the quality of the company has not changed and the company is still running normally, we buy a lot at a discount in the bear market, that is, the price is lower than the internal value of the stock, and then hold it patiently, wait slowly, and wait for the price-earnings ratio to return, or even in the bull market, because the market public is emotionally excited As a result, the price-to-earnings ratio rises extremely. If you sell at this time, your total personal wealth cannot surge? Can top investors not like it? Isn’t this the “Davis Double Click” that all investors are after? For truly top investors, finding a great public company is not difficult. What's more difficult is that they can't wait for a relatively cheap price, because the price of a good listed company is often relatively high, which makes the purchase cost-effective relatively low.

Once the bear market comes, the stock prices of good companies will also be affected by market sentiment, and sometimes even plummet. Many ordinary investors will sell the stocks of high-quality companies at relatively low prices out of fear. The real Top investors, who are calmer this time, also know how to operate against the trend. When others are panicked and greedy, they have many opportunities to buy their favorite excellent company stocks at lower prices. This is the fundamental reason why they like bear markets. Even in a bear market, most companies' stock prices don't plummet.

In the process of decline, there will often be a certain degree of rebound. As top investors, they have keen market perception. They also have the ability to take advantage of market rebounds and make appropriate sell-high and buy-low decisions. The opportunities to make money and profits will not be less than in the bull market. The more top investors there are, the more they understand the dangers of the stock market, especially during the crazy periods of the bull market, and they are usually unwilling to take risks to earn the last copper plate. Their more common approach is that the later the bull market is, the more they need to control their positions or exit early. This is why in the later stages of the bull market, novices make more money. Of course, when the bull market ends, those ignorant and fearless novices tend to lose money. Real top investors may earn more in a bear market with relatively less risk, so they prefer bear markets.