Markets don’t move in neat, predictable lines.
One month, optimism takes over and share prices march higher. The next, fear sweeps through and drags everything down. Investors have a name for these swings: “bull” markets when things are rising, and “bear” markets when they’re falling.
The names might sound dramatic, but they’re a part of every investor’s journey. You don’t get to choose whether you’ll want to face them. You only get to choose how you’ll respond to the cycles.
So let’s talk about bull vs bear market Singapore cycles, what they look like, and the strategies that can help you keep calm when everyone else is panicking.
What’s a Bull Market?
A bull market is simply a stretch when stocks are climbing. Confidence is high, money is flowing, and the mood is upbeat.
You’ll see it in the Straits Times Index (STI: ^STI) pushing to new highs. You’ll also see it when companies post strong earnings. And you’ll notice it when IPOs suddenly start lining up, hoping to ride the wave.
Think about Singapore’s banks. DBS Group (SGX: D05), OCBC (SGX: O39), and UOB (SGX: U11) often rally when loan demand is strong and fee income grows. Over in the US, tech giants like Nvidia (NASDAQ: NVDA) or Microsoft (NASDAQ: MSFT) can spark rallies across the market when their results blow past expectations.
Sounds exciting, right?
But there’s a danger here.
When everything feels like it’s going up, it’s easy to get reckless. Chasing overpriced stocks can backfire badly when momentum cools. That’s why bull and bear investing strategies need to be built on discipline, not hype.
How to Invest in a Bull Market
Bull runs feel good. Prices are green, optimism is in the air, and it seems like every investment works.
But good times can set traps too. Here’s how to avoid them:
- Don’t chase sky-high valuations
Strong companies can still be bad buys if you pay too much. Venture Corporation (SGX: V03) or Keppel DC REIT (SGX: AJBU) are solid names, but chasing them at stretched prices leaves little upside. - Rebalance when things run too far
If one or two stocks have shot up well ahead of the rest, it may be time to trim and shift those gains into sectors that have not overheated. - Keep cash on hand
Bull markets don’t last forever. When the tide eventually turns, having cash ready lets you buy quality companies at better prices. - Stick to your own playbook
Whether you prefer dividend investing, growth, or a blend, let that guide you. Not the headlines. Not FOMO (the fear of missing out).
The real trick in a bull market? Enjoying the gains without losing your discipline.
What’s a Bear Market?
A bear market usually means stock indexes have fallen 20% or more. Confidence evaporates, news gets gloomy, and investors may start to sell first and ask questions later.
We’ve seen it before. Back in 2020, CapitaLand Integrated Commercial Trust (SGX: C38U) and Mapletree Logistics Trust (SGX: M44U) both dropped sharply during the COVID-19 pandemic panic. Yet their malls and warehouses kept generating rental income. Investors who sold in fear locked in losses. Those who stayed patient saw prices bounce back.
That’s the paradox. Investing during bear market conditions feels awful, but it’s often when the best bargains appear. For Singapore investors, knowing how to invest in a bear market is less about timing and more about temperament.
How to Invest During a Bear Market
There’s no secret formula. But history does leave us a trail of lessons: what works, and what doesn’t.
- Back quality businesses
Companies with strong balance sheets and recurring cash flow tend to survive the storm. Singtel (SGX: Z74) still collects phone bills every month. Parkway Life REIT (SGX: C2PU) still owns hospitals with tenants on long leases. - Diversify wisely
Don’t put all your eggs in one basket. A slump in one sector hurts less when you’re spread across industries and geographies. - Average in over time
Dollar-cost averaging: investing a fixed amount regularly helps you buy more when prices are low and less when they’re high. - Lean on defensive sectors
People still need food, medicine, and electricity in a downturn. These areas tend to hold up better. - Stay invested
This one’s critical. Jumping in and out may feel smart in the moment, but missing even a handful of the strongest recovery days can destroy long-term returns.
Bear markets are uncomfortable, yes. But they can also be fertile ground for long-term wealth.
The Psychology of Market Cycles
Markets aren’t just about numbers. They’re about people. And people are emotional.
In bull markets, greed and FOMO drive prices higher. In bear markets, fear and panic take over. That’s how quality stocks end up oversold — and how investors with discipline can step in.
Understanding investor psychology Singapore investors face is half the battle. By having market cycles explained in plain terms, you realise downturns are not disasters. They are simply part of the rhythm of investing.
Get Smart: Thriving Through Every Market Cycle
Bull vs bear market Singapore cycles are unavoidable. You can’t skip them. But you can prepare for them.
Focus on quality companies. Stick to your long-term plan. See downturns as chances to buy, not reasons to sell.
Do that, and whether markets are roaring ahead or stumbling lower, you’ll keep moving closer to your wealth-building goals.
This could be the fastest way to jump from a “newbie” investor to a seasoned pro. Our beginner’s guide shows everything you need to know to buy your first stock and beyond. Click here to download it for free today.
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Disclosure: Felicia owns shares of CapitaLand Integrated Commercial Trust, DBS Group, Keppel DC REIT, Mapletree Logistics Trust, Microsoft, OCBC and UOB.
