Bear markets are terrible for permabulls who just buy and hold forever. The stock market tanks 40%+ and it takes years for the stock market to recover to its previous all time high. During those years these permabulls are underwater with massive losses.

However, bear markets are good for savvy long term investors and traders who know what they're doing. Bear markets yield massive profits for investors and traders who can predict the bear market and predict the start of the next bull market. Every crisis is an opportunity, and bear markets are huge opportunities. Here's why.

The first rally of a new bull market rally is always very fierce

Mean-reversion states that when you stretch an elastic band too much in one direction, it will snap back very fiercely in the other direction.

This means that after the stock market crashes in a bear market, it will rally like crazy in the first leg of a bull market. This first rally will yield massive profits for investors and traders who can catch the bear market's bottom with a reasonable degree of accuracy.