❓Why bear market is the best moment to invest
Bear markets, when assets plummet 20% from recent highs, are among the scariest market events you’ll encounter. But don’t stop investing. A word of the wise: “Be fearful when others are greedy. Be greedy when others are fearful.”
The words “bear market” strike fear into the hearts of many investors. But these deep market downturns are unavoidable, and often relatively short, especially compared with the duration of bull markets, when the market is rising in value. Bear markets can even provide good investment opportunities. As an investor who holds MFI tokens, here are a few steps you can take to earn profit via staking.
First off, you might wanna ask, but what are those MFI tokens that you are talking about? Well, as users being rewarded by MFI tokens from earning rewards in the MetaFinance program, the MFI tokens held values of their own. MFI is the governance token of MetaFinance, it also serves as the utility token to facilitate the value exchange among the various modules within MetaFinance.
With MFI tokens in your pocket, you can stake it and receive mining income from mining pools of MetaPool, you can also receive your MetaMedal (MetaFinanceDID), and mint your unique NFTs from MetaID. Moreover, you can use it to participate in on-chain voting for governance and the development of the various products in the MetaFinance ecosystem.
Now that you understand what are MFI tokens, you have to understand how these tokens can make you rich, which leads us to the major rules for successful bargain hunting:
There must be a huge price fall
To be frank, the word “bear market” in the title almost gives it away. Around 3 to 4 months ago, a single MFI token is worth $300. The value depreciated because of the bear market. However, the bear market would not last forever. Bear markets tend to be shorter than bull markets — 363 days on average — versus 1,742 days for bull markets. They also tend to be less statistically severe, with average losses of 33% compared with bull market average gains of 159%, according to data compiled by Invesco. Thus, if the value of the tokens is almost certainly going to increase after the bear market, Then it would be a waste to sell them now instead of waiting for a higher price.
There must be strong pieces of evidence supporting a later price rise.
if you choose to follow MetaFinance’s progress, you would realise that it is a young, and vastly-evolving project. With new products and services coming out almost every month, such as Meta ID, MetaTrigger, etc. meanwhile, as the project progress, the value of the tokens is bound to improve as well. So here is your chance to wait for the value to appreciate. Wouldn’t it be a pleasure to purchase the tokens for dozens of dollars, and sell them at a much higher price of a few hundred dollars?
Well, some conservatives might argue that investment ultimately involves, risks. What if I do not want the risks? Don’t worry, you might want to try staking. The MFI staking product, MetaPool can solve your problem in a minute. MetaPool adopts a liquidity mining mechanism with no pre-mining, no private equity, and no team reservation; the MFI produced by MetaPool carries the community value of MetaFinance, and the MFI is distributed to the hands of effective consensus participating in the MetaFinance ecosystem. On the BSC chain and HECO chain, users can stake their MFI tokens to start mining and gain MFI rewards for doing so. According to the change of staking period, up to 4 times, the computing power can be obtained. Therefore, staking means that you get to enjoy your passive income as long as you own the tokens!
Well, as long as you understand how these MFI tokens can help you survive, here are a couple more strategies you can take advantage of.
Know that you have the resources to weather a crisis
“Some people panic in a bear market because they don’t know whether they have enough cash to handle near-term goals,” says Mark Riepe, managing director of the Schwab Center for Financial Research. Ideally, you won’t have to face this question in a crisis — because you should know the answer.
If you’re retired, knowing that you have the next 12 months of living expenses in a bank account or money market fund — and a few more years’ worths in bonds that mature when you need the money — can help keep you calm and clear-headed, Mark says.
You might feel risk tolerant, but if you haven’t structured your investments to handle a sharp drop, you may have to make painful adjustments to your lifestyle when the crisis happens.
Talk yourself out of panic selling
Perhaps the most important step to take during a bear market or market crash is to take a deep breath and talk yourself out of selling your shares in a panic. (It’s also helpful to avoid frantically buying the dip on stocks you aren’t fully confident in but seem priced like a bargain.) Selling your shares locks in whatever losses you’ve sustained, regardless of whether there is a valid business reason for the underlying company to experience additional headwinds.
In the current market, there are truly quite a few economic headwinds making things difficult, but it’s also true that buying high and selling low is a losing strategy. Eventually, the market will recover, and when it does, the stock you’re itching to sell could easily come back with a vengeance. Therefore, when you get tempted to pull the plug on some of your investments, you’ll regret not stepping back, especially if you don’t require the money you invested anytime soon.
Think big, act small
During a bear market, investing like a millionaire means staying focused on your objectives while being strategic with your actions.
That includes considering what the economy and markets will look like, how consumers will be spending money and what the interest rate forecast may hold. They then use that dollars-and-cents thinking to shape the actions they take in the short term.
“They manage risk by making a series of small decisions and know that any decision can be a wrong decision,” Kendall says. “But a series of well-thought-out small decisions will typically outperform just one make-or-break large decision.”
The lesson here, Shuchman says, is to avoid making “all-in” buy or sell moves since the odds of this strategy paying off tend to be low.
Automate your investments
It ensures that you’re taking advantage of the power of dollar-cost averaging and compounding interest consistently over time. Second, it can help you avoid the pitfalls of trying to time the market.
The amount of time an individual spends in the market is more important than timing in the market, says Tim Quillin, a chartered financial analyst and partner at Aptus Financial in Little Rock, Arkansas.
no one knows where the stock market is going from day to day or year to year. In December, the vast majority of Wall Street forecasters said the stock market would rise in 2022. Whoops. They got it wrong.
None of that is critical if you invest in the whole market for the long haul, putting money in regardless of the market’s short-term movements. This approach is incredibly simple. You can use just one index fund to capture the entire U.S. stock market or even the entire world’s stock market. Look for an index fund with low fees by comparing what’s called the expense ratio. Shop around, and do your research.
Keep your investing as simple and as cheap as possible. As John C. Bogle, the founder of Vanguard and creator of the first commercially available index fund put it,
“In investing you get what you don’t pay for.”
Don’t put yourself in a spot where short-term declines in the market or the fortunes of individual stocks can hurt you. Instead, set yourself up with solid, diversified, inexpensive index funds and you will be in a great position to prosper from the growth of the economy over the long run.
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