Bear market is defined as a protracted period in the market which the security prices fall, this usually comes together with a pessimism issues. Most common scenarios we can see here is when the investors or mostly likely traders are rushing to get out from the market. Optimistically, all of them are looking for a safest haven to park their funds. Some will transfer to bank accounts, where it offered better interest on this period.

Veteran investors with larger funds are more smiling at this stage compared to the small scale trader in the market. Because they know that financial panics will always tend to present new opportunities to invest. Truly, by attempting to pick stock on bear market stage is very difficult and could only result frustration and destruction of investors’ capital. That is why investing stock is very risky, but if we’re looking to the other side, buying stocks or securities during bear market is really cheap in terms of ratios and other fundamental basis.

It’s just like going to the bus terminal for a ride, isn’t better to be early so that we can pick better seats than during rush hours? Of course there’s a risk on it, since the area might be dangerous and to be there first or alone, you’ll be prone to be a victim of a holdup or any crime related incidents. But that’s it, risks are everywhere and we have to live with it.

To understand market cycle is might the key, where the rise and fall of equity sectors are all written decades ago by different economist, analysts and veteran investor but still only few notice it. We know that we can’t oppose the market trend, all we can do to ride with, so the market cycle is the guide where now to place our funds. It would be easier to say than apply isn’t, but the market trend is always right, we can’t fight against from it.

Every sector are typically advance at different phases of the cycles which provides the investors important hints or clues and can dramatically help out on portfolio management. Among the rest, the transportation sector is the one considered the toughest as a starter of a bull trend, but usually ends up on the top signaling the end of the ride. This old chart maybe a Stone-Age technology by now, in this new era on stock exchange, the company with nice financial growth and fundamentals is healthier basis to buy.

With internet access, we can log on at stock exchange website and study the Financial Statement of the companies. The stronger fundamentals the better, 2nd and 3rd liner companies are most likely the first to fall compared to the larger companies which can easily retrace. So where to place our fund? Buy blue chip companies!

We don't need to hide in our cave when the bear comes to the market and dragged it down. We'll just need to pick companies that will pay off when the bull makes return.