There is an old investment saying that “in a bull market, everyone thinks he’s a genius.” It’s true. When entire indexes skyrocket for weeks or months at a time, it often looks like investors are reaping the rewards of a methodical approach. Some investors openly credit their pet theories or formulas for their huge returns. In reality, that is rarely the case. Most investors who prosper during bull markets are simply riding unsustainable, mania-driven waves.
Indeed, it is investing during bear (or down) markets that actually requires real insight.
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