Gods of war

Source: Dreamstime

The shares of producers of weapons, missiles, rockets, fighter jets, ships, tanks, drones and all sorts of military equipment are considered a good investment in times of economic uncertainty. Even though they do not provide staggering profits, usually they are a constant source of income, since government expenses (mainly the U.S.) remain relatively constant. 

When, however, there are geopolitical tensions and wars, the shares of defence companies become very attractive. Then, government defence expenses soar and the orders for all sorts of weapons are literally pouring in. And this is quite logical. 

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What Is a Bear Market (and How to Trade It)?

Bear silhouette on red smoke background

Source: Dreamstime | Author: Ilkin Guliyev

Reading time: 8 minutes

A bear market, or the period when stocks lose their value for a prolonged period of time, can no doubt sound scary to first-time investors. And while every market goes through this cycle at some point in its lifespan, the good news is that the bulls far outlive the bears when it comes to longevity.

So, what are bull and bear markets, what causes a bear market, and what can you do to protect your portfolio when all of your assets seem to be headed towards record lows?

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