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  • Writer's pictureAntonise De Wet

Will You Answer All 7 Questions Correctly in the Bear vs. Bull Market Quiz?

When there's a bull market, are you smarter than the average bear?

Can you tell the difference between fact and fiction during a bear market?

Let's see how well you're prepared to thrive during these common market cycles.

Earn your market preparedness badge by answering 7 questions about the fundamentals of bear and bull markets.


Correct answers displayed after each question. 1. WHICH IS MORE COMMON: A BEAR MARKET OR A BULL MARKET?

  • A) Bear market

  • B) Bull market

  • C) Neither. They occur equally often

Answer: B) Bull market

A bull market is more common. Bull markets have occurred for 78% of the past 91 years. 2. WHAT TYPICALLY LASTS LONGER: A BEAR MARKET OR A BULL MARKET?

  • A) Bear market

  • B) Bull market

  • C) They last about the same amount of time

Answer:

B) Bull market

A bull market usually lasts longer than a bear market.

Average bear market: 289 days (9.6 months). Average bull market: 991 days (2.7 years)


3. TRUE OR FALSE: OVER THE LAST 20 YEARS, 56% OF THE S&P 500'S STRONGEST DAYS HAPPENED DURING A BEAR MARKET.

  • A) True

  • B) False

Answer:

A) True

In contrast, 34% of the S&P 500's strongest days happened during the first two months of a bull market, before it was clear that a bull market had even started.2


4. BEAR MARKETS HAVE BEEN HAPPENING _______ SINCE WORLD WAR II (1945).

  • A) Less frequently

  • B) More frequently

  • C) At the same rate

Answer:

A) Less frequently

From 1928 to 1945, there were 12 bear markets, with one occurring about every 1.4 years (on average). Following 1945, there have been 14 bear markets. That's one every 5.4 years or so (on average).2


5. OVER THE LONG TERM, A BEAR MARKET OCCURS EVERY ________ YEARS, ON AVERAGE.

  • A) 1 to 2

  • B) 4 to 6

  • C) 7

  • D) 8

Answer:

B) 4 to 6

A bear market occurs ever 4 to 6 years.1,2


6. WHAT'S THE BEST THING TO DO IN A BEAR MARKET?

  • A) Buy

  • B) Sell

  • C) Nothing

  • D) It depends

Answer:

D) It depends

It depends on your circumstances, risk tolerance, and goals.


7. WHAT'S THE WORST THING TO DO IN A BEAR MARKET?

  • A) Buy

  • B) Sell

  • C) Nothing

  • D) It depends

ANSWER:

D) It depends

It depends on your circumstances, risk tolerance, and goals.


Be prepared! It can be easy to forget the facts when markets get volatile.




FINANCIAL LESSON


How to Make Better Financial Decisions in Both Bull and Bear Markets


How many questions did you get right? Which ones surprised you the most?

When markets are volatile, it is easy to forget what you learned on the quiz.

It's natural to panic or feel anxious during a bear market.

It's easy to become overconfident in bull markets, and it's tempting to succumb to optimism and greed. When market changes occur unexpectedly, even the most astute individuals can become impulsive and make rash decisions.

These can sometimes get in the way of larger financial goals.

So, how can we keep our cool and make better decisions regardless of what the markets do?

By concentrating on a few key facts.


For example, no bear or bull market lasts forever, and trying to time the market is a bad idea.

And the fact that it's OK to get emotional when the markets go crazy — just don't act on impulse.

Finally, remember that it is always beneficial to discuss major financial decisions before making a move. It can provide you with a new perspective and may even reveal new possibilities that you haven't considered before.


Sincerely,

Paavan Kotini, CEO & Principal Advisor

Kotini & Kotini

https://kotiniandkotini.com

(804) 372-8307


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