First, what is a Bear Market?

If you thought that "Bear Market" has to do with bears walking around the mall, don't worry, it's not. This economic term refers to when the stock market is depressed. In other words, stock prices are falling, usually by more than 20%, and everyone seems to be in a panic. It's as if the market were a hibernating bear: slow, quiet and unwilling to get up.

On the other hand, there is the Bull Market, which is when prices rise like crazy, like a bull running. But today, our talk is about surviving the bear's hibernation.

Why does this happen?

Imagine the market as a bunch of nervous people playing a giant board game. When something goes wrong — like high inflation, war, a pandemic, or even economic gossip — people start selling stocks, and the bears come out of hibernation. Basically, a bear market is a reflection of everyone freaking out at the same time.

How to survive without losing all your money (or your patience)?

1. Think like a long-term investor: Don't sell everything just because the market has gone down. It's like giving up on a video game just because you lost a tough round. Calm down, breathe, and think about the future.

2. Invest little by little (even during a crisis): There’s a fancy term called dollar-cost averaging. In plain English: instead of spending everything at once, buy little by little, taking advantage of low prices. After all, sales aren’t just at the mall, right?

3. Have an emergency fund: Before you start playing in the financial market, save some money for emergencies. You can't invest with peace of mind if you don't even have enough to buy pizza at the end of the month.

4. Study and take the opportunity to learn: A Bear Market is the best school to understand how the market works. Read, watch videos, ask questions. You know that saying “what doesn’t kill you makes you stronger”? That’s right.

Can you profit from the bear?

Yes! When everyone is afraid, opportunities arise. It's like Black Friday: while some people cry over the price drop, others take advantage of the opportunity to buy at a low price. Experienced investors know that the bear doesn't hibernate forever and, when it wakes up, prices will rise again.

Okay, but what now?

Would you rather wait for the bear to wake up or would you like to learn how to deal with it? Tell us: what is your biggest question about the financial market? Let's simplify it together!