Let's do something different today and let's talk about the uncomfortable and the talks of a potential bear market. Now i know anytime a youtuber or influencer even mentions. The word. Bear sounds like a bear or if my hair is a little messed up and i look like a bear.

People tend to get antsy claims of fud dislikes negativity and denial because of the fear of the worst, but in this video let's take time to find what a bear market means and how this really impacts you by the end of this video you'll have a better Idea of what to expect, if we are in a bear market and how to prepare for any type of market downturn before we get started with today's video, don't forget to drop a like down below and subscribe to the channel. If you guys are new and welcome to the jungle now before we go into the main topic of this video, let's talk about some quick major news and some recap of what happened over the past day, and that is going to be the fomc meeting we experienced Yesterday so jerome powell's q-dash went ahead and let us know how the federal government is preparing to raise their rates now for march. So jerome powell went ahead and said. The central bank would continue to monitor the course of the pandemic inflation and unemployment, but gave us clear signal yet that the us's historically low interest rates would start to rise.

Soon. I would say the committee is of mine to raise the federal fund rates at the march meeting, assuming that conditions are appropriate for doing so said powell. They also quote the economy no longer needs sustained monetary policy support the central bank cut rates to close to zero. When the coronavirus pandemic hit the u.s in march 2020 and began pumping money into the economy by buying financial assets in order to stave off a potential financial collapse.

At this week's meeting, the fed committee approved one final round of asset purchases which will bring that stimulus program to a conclusion. By march, the fed has a dual mandate to maximize employment and to keep prices stable. This is very important. In recent months, inflation has risen sharply to an annual rate of 7, which is the government's reported inflation.

If you guys do a bit more research on the metrics and data that they use in order to gauge that number you'll notice, it's a little off, the employment rate has fallen back 3.9 percent close to pre-pandemic levels. It has signaled for months that rate rises are coming in order to tamp down price rises, and powell said that there was quite a bit of room to raise interest rates without threatening the labor market. So, taking a look at the last seven days with the charts for bitcoin, a lot of investors were anticipating a decrease in the price of bitcoin, so you'll notice that going up before the meeting had actually happened into the morning. We were seeing bitcoin rallying up and even breaking past 38 thousand dollars before tumbling down as soon as we got some additional news and confirmation on what the feds plan to do now, with what jerome powell said, i don't think it is necessarily bad news, but we Are really just pushing the problem ahead into the future less than 24 hours, since the meeting has taken place, bitcoin has been all over the charts, but we are still sitting at above 36, 000 much better than where we were in the last seven days where bitcoin Had even fallen at a certain point at under 34 000, where the market was getting very very fearful now, a lot of this was to be expected if you guys have been paying attention to the markets, but it looks like right now because the overall sentiment of Stocks and crypto has gone down so significantly.

It looks like the reality of the situation is setting in a lot more for many investors. Now we're not going to name names, but there are other creators out here on youtube who you know have made some questionable judgments and selling off positions almost near the bottom of what we expect. Uh everyone right now has their own strategy and plans uh in investing into the market towards the end of video i'll. Give you guys my two cents on what i'm doing.

What i think is the best move and if you guys are new to the market, we'll be going more in depth on what you should be doing as an investor. So this quote right here by danielle. Diamartino explains it the best. She states the fed's biggest challenge right now is figuring out how to implement policy measures that are hawkish enough to lower inflation, but that also keep financial markets afloat.

You're gon na get people from both sides of the spectrum saying the feds do not care about the stock market and they just want to be able to lower that inflation rate and do his job that he was dedicated to do. If we do see any big drops in the stock market and the overall economy tends to slow down, we may even see interest rates return back to zero, which is what we noticed happened before in the past, towards the end of that quote. They end with the fed is faced with choosing the lesser of two evils going into the crypto fear and greed index. For today it's actually doing a little bit better than it was about two three days ago, even though a lot of all coins listed in the market are still not reflecting that change in sentiment.

So yesterday i went ahead and shared some statements within our private discord. Community, so bottoms on alt right now are just constructs in your mind, we're in a different regime now one where, if bitcoin says, dump alt ask how low until bitcoin bottoms alt are floorless charting bitcoin seems useless here. The charts won't tell where a bottom is macros. In the driver, if the fed pulls a rug and stocks collapse, support trend lines ends up just being memes.

The correlation that we've been experiencing over the past few weeks between seeing what happens with the stock market and crypto has been clear if stocks go down. Crypto goes down what's going to determine if stocks go up or down, this is going to be central bank policy and the fed interest rates over the last one year. The s p 500 is still up 15, but this downward trajectory that we started since the beginning of january has been pretty volatile and clear that it is not doing well bumping this out, though, on the five years you're still yielding an 88 return uh, and this Still does look like a little blip in the radar and nothing compared to the entire market crash that we experienced during the start of this pandemic. But you still want to be proactive and you still want to be ready for any worst case scenarios.

And this is going to go to the topic of today's video and that's going to be all about defining a bear market and how to survive. So when it comes to any asset, it doesn't need to be crypto, it doesn't need to be stock, it can be any type of investment that you're looking at. We have two terms: we have corrections and we have bear markets. Oftentimes people don't realize that there is a specific number associated with both of these definitions according to investopedia, for a correction to happen, this is going to be a decline of 10 or more in the price of a security from its most recent peak.

Corrections can happen to individual assets like an individual stock or bond to an index measuring a group of assets. Now i really like their analogy here on how a correction works, so they state corrections are like that spider under your bed. You know it's there lurking, but don't know when it will make its next appearance. While you might lose sleep over that spider, you shouldn't lose sleep over the possibility of a correction when it comes to investing.

You have to accept the possibility of seeing corrections in the market, take a look at bitcoin and all the dips that we've had leading up to new all-time highs and still seeing generational wealth being created. Arguably, in the context of determining whether or not something is a correction, there is the off chance that we could also see a bear market as well going back to the article they state. According to a 2018 report from cnbc and goldman sachs, the average correction for the s - p, 500 lasted only four months and values fell around 13 before recovering. However, it's easy to see why the individual or novice investor may worry about a 10 or greater downward adjustment to the value of their portfolio assets during a correction.

They didn't see it coming and don't know how long the correction may last for most investors in the market for the long term, a correction is only a small pothole on the road to retirement savings and the market will eventually recover, so they should not panic. So i think that's really where we need to be in terms of mindset, taking a look at your portfolio. You can easily get into this emotional state where you think selling right now is the best move to make, but in the long term, in the grand scheme of being an investor, if you are here for the long term run right now, i believe selling is not The choice to make right now, as the government plans, to proceed into new territory of uncharted areas. We have to be prepared and we have to know that.

Even if we do see some volatility, it may be short-lived on the less optimistic side if we were to take into the reality of the situation and expect a correction to be something more and turn into a bear market, let's define what that is what the stats Are what we've actually seen historically before in the past, and what this really means for us investors, according to investopedia, they define a bear market when a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20 or more from recent highs. Amid widespread pessimism and negative investor sentiment, so we take a look at bitcoin and compared to the previous all-time high of what we saw back in november. Obviously, we are down way more than 20.

In addition to that, the crypto, fear and greed index does indicate that we are in a state of mass of pessimism and negativity within this market, but you also need this factor here. It's the sustained period of time, which is going to be typically two months or more. So if we do compare the peak of the market november 8th, it would be anywhere near february 8th if we wanted to have confirmation that this could be entering a bearish cycle. Also pay attention right here: bear markets may also accompany general economic downturns, such as a recession, and bear markets may be contrasted with upward trending bull markets.

So, while the causes of a bear market can be all over the place in one of my last videos, we mentioned all the reasons of the slowdown in january tax season coming up uh the uncertainty and regulations for the executive order that the biden administration is looking To take into place, we also have statistics and news reports from a lot of the credit card companies talk about all the overspending that many individuals did back in quarter four, and that could just lead to many people not wanting to invest people trying to figure out How much money they want to save and when the market is already in a downward momentum trend, it may get harder for other individuals to want to enter positions then as well. That is all pretty much summed up by the uncertainty within the rate hikes and where we are right now with inflation. So before you guys think this is all just terrible news going on in the financial world, you got to realize that there is still green and there is still light at the end of the tunnel, and i found this great pdf discussing with us 10 things that You should know about bear markets so to kick it off. Even elite athletes need rest days to stay healthy.

Sometimes, financial markets need to reset from record-setting performances too. Here's what you need to know about bear or down markets. So number one watch for 20 market cycles are measured from peak to trough. A stock index officially reaches bear territory when the closing price drops at least 20 percent from its most recent high on average stocks have lost 36 percent in a bear market, but on contrast, stocks have actually gained 114 on average during a bull market.

Now number three bear markets are completely normal. There have been 26 bear markets in the s p 500 index since 1928. However, there have also been 27 bull markets where stocks have risen significantly over the long term. This is why i don't really understand individuals who tend to short different positions and short markets.

There's always a possibility of us to reach newer, all-time highs than to bank on the idea that a certain index or a company is going to go down any lower. Now i do understand this if it is happening from hedge funds because think about the name of hedge funds, they are trying to hedge themselves against any type of market volatility. One of the strategies in hedging the market is going to be shorting if you're not looking into other equities across different markets international as well uh. The other play is to hold tight on cash, but oftentimes hedge funds want to be proactive, they're not going to be like us investors where we could wait out any type of market volatility for the next six months.

Hedge funds want to make moves now. So if we do see downturn, they can hedge their portfolio, they can have another asset that balances out and still makes them green, so they can keep their investors happy number five, every 3.6 years. That's the long-term average frequency between bear markets, though many consider the bull market that ended in 2020 to be the longest on record. The bull that ran from 1987 until the dot-com crash in march 2000 is technically the longest or a drop of 19.9 in 1990, which nearly derailed that bull, but just missed the bare threshold.

So yesterday, the nasdaq 100, along with the rest of the market, turned on a dime in the middle of its worst sell-off in two years and vaulted back into green erasing a loss of nearly five percent. This had happened earlier this week and the last time we saw any type of intraday loss or volatility like this was back in 2008, and you guys may remember what we experienced then based on historic evidence of that volatility. The dot-com crash the 2008 housing recession and then getting that signal here in 2022. You may think: okay, now is the time to panic.

Let's sell everything: let's go back to ramen noodles and see if mcdonald's is going to be accepting us to start work there, but i wouldn't be necessarily too emotional. Even when you see data just like this, i know as an investor for me, we're gon na, be seeing a lot of news and we're still entering a lot of new uncharted territory, and just because we do see historic occurrences happening before in the past. It isn't a full 100 predictor of what we're going to experience now in the future that is guaranteed as an individual and as an investor i average into these dips. That has been my strategy since the beginning.

Instead of trying to time the market every single time by being emotionally observant within this market, staying on top of the data in the news that is coming in and not acting on, emotion, selling, off different positions, but understanding the basic principles of investing and long-term success, If you don't have money to invest right now find ways to build up that capital, so you can start dollar cost averaging into these dips. If you're already over leveraged - and you have positions still in the green, then you can consider putting those bags off the table. For me, i am going long, which means i am putting in extra positions into the market whenever it goes down and if we are up that is when i'll slowly take out those profits which we have emphasized on this channel for literally the last six to eight Months consistently, every single time, that's why i know a lot of our viewers have been coming back. You guys are wondering like why is this random asian guy brian jung always getting views on crypto and there's 100 crypto youtubers? It's because this is the principle that we've emphasized that have literally made people money.

So when we make people money on this channel, people tend to come back to see what's happening next, when we saw extreme greed happening in the market, it was always emphasized. Take profits off the table when everyone, your neighbor, your plumber, your electrician, everyone's trying to invest into dogecoin and shiba, inu and bitcoin on leverage. That's when you want to consider moving your bags out of the market now, not everyone can time the market and that's completely fine, but i do think one of the worst moves to make right now is just panic, selling any investment and then trying to retime entry Into the market going back number six bear markets have been less frequent since world war ii between 1928 and 1945, there were 12 bear markets or one about every 1.4 years and since 1945 there have been 14 one about every 5.4 years. I think the reason that we're also seeing less bear markets happening is just because we're getting more and more financial awareness, where your average investor back in the day, they had to do a lot more work in order to have any positions in the market.

If you guys think of movies, like wolf of wall street, you know they had their little pink slips and you had to make a phone call and you weren't, you know you didn't, have access to some of the technology and the instant capability of putting in money Into the stock market or being able to buy crypto as easily as we do so for number seven, this is really good. Too, half the s, p 500 index strongest days in the last 20 years, occurred during a bear market, so another 34 of the markets best days took place in the first two months of a bull market. Before it was clear, a bull market had begun, in other words, the best way to weather a downturn could be to stay invested since it's difficult to time the market's recovery, knowing that we're still seeing high correlation between stocks and crypto. Let's take a look at the s p 500: a lot of the best moves that were made a lot of the millionaires and people in my life that ended up making enormous amounts of money.

It came during these huge market dips. It came when people were all terrified their blood in the streets, and then they said you know what fundamentally nothing has changed. Yeah we're going through maybe a pandemic right now, but these companies are still going to be around as long as humans aren't. Turning into you know some crazy type of zombie and then we're literally at the end of the world.

If things recover, we should be able to see the government stepping in giving a stimulus and making sure that the stock market, the economy things go back on track because at the end of the day, as much as you guys, don't like the government. That is their duty, which sometimes they do a terrible job of doing, but that is their duty to make sure that things return to normal or we are in a growing economy or we are avoiding things like a recession which may still be inevitable. If you are a crypto investor, you have to realize a bear market is going to be the most amount of opportunity that you can get in on. So if you saw all these projects you're interested in the metaverse, you still love the metaverse, and there are things within that market, where i think we're gon na still see a lot of opportunity, just as an example.

I i haven't seen any of this done yet, if you guys think about it, a lot of people as an example who are trying to date during the pandemic went on dating apps. We saw dating apps surge in the amount of users dating apps transitioned into facetime videos. Things are still virtual. We saw zoom calls people using different mediums of being able to connect with one another.

I think you know with metaverse that is going to be a huge space right there too, even with that, just as an example of different innovative fields where we could see mass use, why not be doubling down or finding those projects or finding companies that allow you To invest early, so if we do get things taken off, which they will, we will not be in a depression, bear market for the entirety of our life. Things will return back to normal, make your bets when you have the capital now and when the market is low, so you can maximize the amount of opportunity and growth that we'll experience next number. Eight. I like this too, a bear market doesn't necessarily indicate an economic recession.

There have been 26 bear markets since 1929, but only 15 recessions. During that time, bear markets often go hand in hand with a slowing economy, but a declining market doesn't necessarily mean a recession is looming so 15 out of the 26 times. Do we actually see recession happening after a bear market? If you guys remember the last dip, we had within crypto what happened next bitcoin ripped to a new all-time high things are going to be a little bit more different this time, just because in march we do have expectations for rates to start going up and when We do have word on that. I think it's just going to be very difficult for the feds to control the volatility we may see in stocks, but if things come crashing down again, that's going to be another time for you to consider loading up on your bags.

Then so for number nine, assuming a 50-year investment horizon, you can expect to live through about 14 different bear markets. So keep that in mind if you are investing long-term, which i'm sure most of you guys are you're going to be going through a lot of ups and downs. If this is the first time you're experiencing any type of down in stocks and within the crypto market, things are not like this all day. We could even see bitcoin like start blowing up in a week and then all of a sudden we're just back in extreme greed.

It is such an irrational market, especially with all the newer investors that have onboarded the scene. You're gon na go through a lot of the bear markets after a first few ones. You guys are gon na be having that titanium mindset and you'll be straight if it is difficult right now. Just focus on some of these points for number 10 bear markets can be painful, but overall markets are positive.

A majority of the time of the last 92 years of market history bear markets have comprised only of 20.6 of those years put another way. Stocks have been on the rise 78 of the time. Newer investors are going to be buying trading all the time based on emotion. The experienced vets are going to be buying, regardless of what we see in the market and they're going to be doubling down on positions when things are even more fearful.

So, if you're watching this video up until this point, you should be feeling a lot better about where we are within the market. I'm seeing less interest in people wanting to invest but you're getting discounts on assets where people were all over people were obsessed. People wanted more and more at the peak of it if i'm out here, and i want to buy the new iphone for two thousand dollars. Why do i want it less when it's a thousand dollars for the same exact asset, knowing that it may even go up in price later down the road to bring everything together? Let me give you guys some actionable steps on what you should be doing.

How do you invest in a bear market? Do you even invest? What should you be doing should be freaking out crying, or should you just be chilling and making moves like like a wise guy? I don't know why the wise guy thing. So if you want to find the most amount of success in a bear market, having a bulletproof mindset is the most important thing you want to have. First, you can't be thinking about making the super bowl championships if you haven't even gone through the playoffs. Make sure that if you are going through a rut, if you are seeing a down portfolio, think long term have that mindset and try not to be so emotional.

In this market you might be tempted to try and time the bottom try to re-enter these positions uh. But you know i'm gon na come out with the lingo that we say all and time again at some point. We're gon na have to get like a banner for the back of our studio. Do not time the market have time in the market.

Having time in the market is going to be less stressful, you don't have to think about re-entering the market twice: you're going to be saving a lot of gray hairs and overall, statistically you're still going to be much more profitable. If you are in it for the long term run averaging in slowly, especially if you are a newer investor now, this also goes into my point of something i mentioned earlier in this video, which i want to talk about, and that is the idea that everyone's individual Comfort level, as an investor is different, there's a reason why personal finance is called personal finance. It's personal, it's personal to me, it's personal to you uh, if you're a college student or if you're 40, and you have kids you're, not going to be investing the same. You're not going to have the same risk tolerance.

So what this means is really get to know yourself really get to know about how bad you need the money. If you are comfortable with how much money is invested in the market - or maybe you just don't care about the funds right now and you're willing to invest it into a little bit more riskier assets, but have higher yields? Do a reflection of that? Knowing who you are and understanding your profile as an investor is huge in addition to that, the final tip in investing in a bear market. It comes down to quality. It comes down to research.

It comes down to seeing what vc funds are backing up the projects that you're putting money into and if you see all coins as an opportunity, they have no project support. They have very little funds to keep them active in case we do see less and less money going into the market. You would want to stick with higher cap assets, meaning uh. I know ethereum becomes less sexy for people when we had solana avalanche polygon.

A lot of these layer, one solutions and different ethereum killers coming out. You may want to reconsider. Looking back at the big boys. I mentioned this over in our discord too, but my strategy in a bull market is very different from a bear market: bull market, i'm looking to change my assets so move it into those micro caps, uh the higher risk higher reward place.

Just so i can go for the 10 to 100 x within the crypto market, but in a bear market you may want to lessen that you may want to stick with those high mid caps. You want to maybe just focus on bitcoin and the top 10 cryptos listed on the market. You may want to transition some cryptos into other stable coins. It is going to be fully dependent on you, but make sure.

At the end of the day, you are focusing on high quality projects that have utility that have backing that can still stick around, regardless of whatever happens in the market for the next year. Luckily, a lot of the cryptos i talk about are cryptos that have that backing. That will be around no matter what so, if you guys have been following along this channel or you guys are new, make sure you guys continue to stick through and watch some of the content just so we can educate. You guys make you guys money, save you guys money and hopefully, by the end of this year, just come out much much more, wealthier, all right! So, thank you all so much again for watching this video all the way till the very end.

If you guys made it and did enjoy it and you are at the cool part of the end of the video, don't forget to type in the comment. Section cool relief, don't know why just going to go with it, if you guys are watching this here, cool relief, i appreciate you guys before we do close out this video. I do also want to mention ftx listed down below in the description. This is one of the easiest platforms where you can buy trade and sell crypto.

They also went ahead and raised 400 million dollars in their last funding round to reach a valuation of 8 billion dollars. So ftx is going to be giving away a lot of different things to the community and we've been seeing that as well. They are also one of our new partners for this channel for the year 2022.. I'm honored because they work with the big boys, steph, curry, tom brady, and a lot of other celebrities shout out to ftx.

If you guys are watching this all the way till the end check them out, link down below in the description and in addition to that, if you guys want to sign up for the patreon, get an idea of what i'm buying, what i'm trading my watch alerts And you just want to maybe have like a one-on-one conversation with me or just see what i'm trading right now, what my plans are take a look at the link down below in the description for the patreon. We get full access to our discord as well. Now, with all that being said, have an amazing day and i'll talk to you guys soon: peace.