gainspainscapital.com / Graham Summers / June 16, 2017
The world of finance is full of silly and arbitrary definitions.
For instance, a stock market correction is when stocks drop 10%, and a Bear Market is when stocks drop 20%.
Why 10% and 20%? And why a “correction” vs. a “Bear Market?” Who decided on those numbers and those terms and why? Is there even any fundamental analysis backing them up?
Let’s take this line of thinking deeper…
Why are some investors labeled “bulls” and others “bears” based on their assessment of the markets/ risk management?
No one who actually makes serious money from the markets thinks in these terms…
Real investors, who are using the market to grow wealthy, think in terms of “opportunities” and “risk.”
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