It is very well for any investor when the market is rising, when there are profits gained after a period of time. However, the stock markets can never be predicted, and suddenly the values may dip. This causes anxiety in an investor, and he may resort to panic selling in order to avoid further loss on his shares.

If the shares are required to be sold at any cost and when the investor needs some money, it is allright to sell a portion of his stock holdings. One need not sell if the basic management of the company and its standing in the economy is good even if the values fall in a bear phase. A wise investor would treat it as a buyer's market and would invest in some good stocks when the values are lower than usual.

There are many reasons which effect a stock market, the political changes in the area, the demand for certain products, the performance by the company as shown by its statements of account, and so on. Thus a bear phase is very good for a new entrant to the market, or for someone who wants to buy some shares. There is no need to panic if it is a down phase due to some political reasons in the region or some other temporary cause.

Thus a bear market is a good period to invest and not sell in panic. It might take some time before the stocks rise in value and the investor might make a decent profit.