In a way this is true but in a way it si false. Markets at their basic componet are supposed to be fair and balanced, per Adam Smith in The Wealth of Nations, and this should be the repsonisbility of the govenrment to ensure it stays that way. However, all markets will have people that will push the envelope and eventually be regulated. We have to work from a position all markets are fair but not equal. It is that inequality that we want to take adavtange of but we need to understand how the flows go.
Instead of thinking of the markets as this intangible thing, lets look at the markets in a different light. Imagine you are in nature. The markets consist of the canyon, the valley, the mountin and the rivers that flow through. The individual animals are the investments you find in the markets all participating in their little ecosystem having ebbs and flows contirbuting to the overall eco system. The two main leaders in the ecosystem are the bears and the bulls.
Bears, hybernate for periods of time, and when not hybernating they move slowly and methodically and plod along. When you hear the term Bear market, this is exactly what it means. It’s a slow and mehtodical market usually bringing low or negative returns and can be prolonged. A bull market by contrast can be very aggressive and have large upswings and downswings. You can make money in both markets if you know what you are doing and understand to read the signs.
Like the seasons which can be unpredictable and are cyclical so will the markets be. A bear market can come on quickly and so can a bull for all different types of reasons and tey will last for only so long and can disappear with a bang or a whimper. However, there is a thrid type of market that exists that is never talked about. This is the river market. The river market is a mixtur eof both markets. Think of the river market like a combination of Spring and Fall. The snow cap melts and the river overflows in the spring bringing both bulls and bers to the river to get water. As the river flows it energizes the bulls and energizes the bears and they compete with each other to see who will take over. River markets happen more than a bull or a bear market but are also harder to predict as they flood but also in the fall they can dry up because everyone takes the water away and overuses the resource and thus whomever is stronger will survive or thrive. Sometimes that is the bull and other times that is the bear.
How do you handle these markets? Through planning and preparation. Like the bear you need to stock up on rations which could be cash for buying opportunities or evening out your portoflio so you create some hedges against risk. Since a river market can flood you or a prolonged drought can cause you to starve you need to undertsand how the animals, or investments, will react to both situations and plan accordingly. Are you prepared for a flood? At your house you might have flood insurance, in the investment ecosystem there might be other protections. This is all part of having a financial strategy tht can help you accomplish what you want to.