Savvy Trades and Investments

[wadegarret]

Bear market rallies are brutal !

Brutal for the shorts short term, and brutal for the longs longer term. Why ? Because the shorts get hit right away, and can lose back a large % of their gains very fast. The longs on the other hand make some losses back in the short term, but often get duped back in a bad market, only to end up losing even more than they made in the rally, on the next stage down. Bottom line is, even though it's painful to lose back half or more of your yearly profits back in an intense bear market rally, you're better off on the short side in a true bear market trending into recession.