Four Psychological Stages of a Bear Market U.S. Money Reserve Market Insights

Watch and listen to U.S. Money Reserve's Coy Wells talk about the four stages that a consumer goes through from a psychological standpoint in a bear market: denial, high anxiety, fear, panic.

Four Psychological Stages of a Bear Market- Video Transcription

Coy Wells:               00:01

Good morning and thank you for watching daily market insights. Today we're gonna talk about something a little different. We're going to talk about the four stages that a consumer goes through from a psychological standpoint in a bear market. Those number one is denial. Number two is high anxiety. Number three is fear and number four is panic. Consumers over the course of the last two weeks have seen the stock market do something that they've never seen in history. The stock market with the three major drops one almost 700 points in the two days that dropped a thousand points. Those rank in the top seven largest drops in US history in the stock market. This is out of the norm. This is not a normal reaction within the stock market and we talked about that over the course of the past few weeks. Right now, a lot of consumers are still stuck in the denial stage.

Coy Wells:               00:44

That means right now, oh, we'll sit back and see what happens. Going to watch my money. Folks, I'm telling you right now, your money is in trouble. We've talked about it for months upon months and there are multiple issues that are taking a place from a broad spectrum in the economy all the way across the board. Now the media is telling us that it's just a normal reaction. This is not normal. We're talking about three of the largest drops that we've seen in in US history. It ranks in the top seven of the biggest drops in US history for one day drops. The next phase is going into the four that we talked about, is denial. Number two is fear. Fear that it's not going to recover and additional money is going to be lost. Anxiety. You start getting anxiety. Should I move that money? It dropped. What do I do? The last one is panic and that's where everyone starts heading for the gate at the same time. if you're in any of these stages, it doesn't mean that you can't move your money out and then move it back in. Once the money's lost and we enter into a recession that we're talking about in today's era, we're talking about a recession that could rival 2008 and rival the recession of 2000. these are big issues. I want you to think about this on a larger scale. Just imagine if you were going to put money into a business, a big business. You get the company profile, you review everything, you look at it all, everything looks fine, but the one thing that's missing out of the picture is the P and L statement. You asked the company to provide the P, and L, you review the P, and L.

Coy Wells:               01:27

Everything looks great, but the P and L and you identify that the company is $20 trillion in debt. You have to ask yourself the question, would you move your money into that company or buy that company with a debt level of $20 trillion? This is how countries outside the United States are viewing the United States, and this is the same thing you have to be asking and viewing your own money. Your money sitting in a stock market is diversifying in the United States, but right now we are in a point or at a point where the economy of the United States is on the tipping edge and that is where you have to look at the four stages that we talked about in the beginning of this call. Think about where you sit from a mental standpoint and think about the four stages. Those stages will help you in regards to getting your money out.

Coy Wells:               02:09

You don't want to be in a panic mode when everyone's trying to exit to gate at the same time. That is where you will get hurt the most. And this time, if it's a long-term crisis, those who are retired, 75 years or older or maybe even 65 years of older, the problem is you may not have time under this recession. Okay? Uh, as always thank you for watching. Also to help you out with your pension plans and where your state stands with inside the United States. Look at the fiscal states of America and also call or click the link below. Also we've asked in the past to continue to keep sending comments. If you put any comments in or if you have any questions, feel free to call. We'll be more than glad to ask those. If you have some comments or questions, just put them in. We'll get right back to or we'll comment right back to you to help you out with any questions you have in regards to the u s economy. As always, thank you for watching daily market insights.