How are you beating the bear?
Answers
4085 points
EthanR answered one year ago …
Layin back in my chair by the pool, drinkin a nice tall glass of lemonade, watchin a ball game, cookin out, enjoyin the 4th, and waitin for better times!
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2775 points
Oldman answered one year ago …
Bravo EthanR! In addition, it's nice to have cash cows that pay dividends, to cover some of the bills, or provide some liquidity when a value security becomes more of a "BUY".
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3963 points
MNSL answered one year ago …
You can also beat bear market by:
Buying bull and global stocks
Buying value stocks
Buying stocks targeted for acquisition
411 points
jester112358 answered one year ago …
Buy commodities, short financials especially regional banks with large amounts of real estate loans.
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139 points
Redsky answered one year ago …
I beg to differ that buying global stocks can help you fight the bear.
My global mutual funds are already down 10% since year start, they could have been worse if it wasn't for good old Latin America - you should see what the Indian stocks did to me - over 25% loss already!
I also bought in the cream of the mid-east stock crop and did not work either. I don't think it's lknowledge, luck or timing; my better guess is that this global crisis is so big and strong, it touched everyone.
Very few tricks are left to fight the bear, but global stocks is not one of them I say.
3963 points
MNSL answered one year ago …
Successful of global investment depend on how you select stocks, sector and markets time to time.
When emerging markets or frontier markets becomes overvalued, we must avoid them. Some global investors invested in commodity related companies at the beginning of the bull market through out the world. Up to now, their return is more than 500%. Now we must try to identify markets, Stocks and sectors that going to outperform market in the next 05 years.
2183 points
ChaosNantuko answered one year ago …
Don't fight the bear, join the bear. In a bear market, the vast majority of stuff is falling... so short stuff, by puts, use bearish vertical spreads, and just make money from the fall!
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356 points
Dusty answered one year ago …
I am holding several Closed End Funds that generate decent monthly dividends. Also a couple of Canadian Trusts and an MLP pipeline. Share prices are down which makes for a lot of red ink on the balance sheet, but the cash dividends keep appearing in the account.
There is a likelihood of a serious bomb crater in August and I am holding new cash with the possibility of buying, if and when that happens, at too-good-to-be-true share prices. A chart published by Credit Suisse last winter showed that "Alt-A" and "Agency Reset" mortgages will make the September '08-January '09 real estate and financial sector look just like the first half of '08 except we are starting down the next part of the roller coaster ride from a much lower level.
I agree with EthanR that it is better to spend a lot of time relaxing by the pool. Stay away from the news and the computer as much as possible. Sometimes it's better not to know.
175 points
ricTICros answered one year ago …
First I look for stocks which are breaking out and look like a good buy. Then I check the charts to see how low they could drop in a quick reversal. At that price I sell naked puts, but as protection buy the next lower put. When the market was rising or steady I sometimes just sold puts below the stock's price. If the stock continued to rise I missed the stock but kept the option premium. If the stock dropped I either accepted assignment getting the stock plus option premium at a big discount, or if I changed my mind bought back the option at either a slight gain because of time decay, or a tiny loss.
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