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Ursaphobia – How to Survive a Bear Market
I have written this special report as a 10 step action plan. It is written in such a way that you don’t need to act upon the actions steps in this report all at once. With of the wild price swings in the market, the last thing you need is more “stuff” to do regarding your financial assets, but keeping track of your portfolio during a bear market is vital to your financial future. The reason is you need to know what you are invested in and exactly what you own. Many of beliefs held by investors of all experience levels have been shaken to the core in this bear market. The beliefs like buying-and-hold, buy on the dips and more.
Bear markets do test even expert investors, but believe me when I say those beliefs are still solid investment strategies. However, what has changed is the need to pay closer attention to our investments. Gone are the days that you can buy-and-forget or hire a broker to “manage” your money. Many on Wall Street and your local broker were taken by surprise by speed of the Great Bear market of 2008. It came so fast, that many financial professionals were still telling their clients to buy on the dips and invest for the long term.
I would like to share with you to following headlines:
The Dow Jones Industrial Average is down 175 points…
The Nasdaq is down 2 ½ %…
Oil prices are up $25 per gallon…
Employment rates highest level in 5 years…
Real estate values are declining…
Do those headlines sound familiar? Don’t those headlines read like they were from the newspapers of last week? However, I forget to mention that these are from actual publications from the 1970’s.
Yes, bear markets can be scary; bear markets can cause sleepless nights; bear markets can strain your budget; bear markets can put a strain on your personal relationships.
However, the best thing to keep on mind during a bear market is we have seen them before and we will see them again. Remember, everything that goes up must come down and visa verse. Basically, during a bear market, the stock markets are realigning and readjusting to the valuations after a bull market.
Bear markets can scare not only novice investors but veteran traders, too. What exactly is the definition of a bear market?
A bear market is defined a period of widespread pessimism and falling security prices. Both of these can contribute to negative sentiment and can be self-sustaining. As a rule of thumb, a decline of 20% or more in the broad market indexes is considered the beginning of bear market. The broad market indexes include the Standard and Poor’s 500 (S&P 500), Dow Jones Industrial Average (DJIA), Nasdaq (NASD), etc. In addition, this decline must be over at least a 2 month period. However, one thing to keep in mind is a market correction is different than a bear market. A market correction is a short-term price decline, usually less than two months.
Other Details- 1 Ebook (PDF), 21 Pages
- 1 Ecover (JPG)
- Year Released/Circulated: 2009
- File Size: 339 KB