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Bear Proof
Investing Bear-Proof Investing “Protecting
Your Financial Future in a Bear Market and “What happened?!” For years it was hard not to make money in the stock market. Most people had some form of stock-base investment, and some even began controlling their own portfolios by trading online. But in March 2000, and for the rest of the year, things started to change. Tech stocks plunged, and then blue chip companies began to fall.Dot.coms vaporized, IPOs became DOA, high-tech stocks fizzled, and utilities and blue-chip leaders fell to embarrassing lows. The intoxicating run of the market came to an abrupt end and today’s bear market emerged. Investors who watched their portfolios evaporate began to sell, tucking their savings into safe haven investments. Over half of all American households have some sort of stake in the stock market, whether through an employer-sponsored retirement plan, employee stock options, mutual fund or stock portfolio. Everyone, from novice investors to experienced financial advisors, is searching for strategies to make rational decisions about their investments and cope with the current market slow-down. What this book offers you is a set of strategies to make rational decisions about investments in an unstable or down market. These are tried-and-true methods of protecting your portfolio from the worst in falling market conditions. Your goal in a bear market is to hold your own and position yourself to take advantage of an emerging bull market. In Bear-Proof Investing, you will learn… The two most important words in investing: “Asset Allocation.” Asset Allocation is Diversification on steroids. You must diversify your portfolio among stocks, bonds, and cash. The proportions depend on your time horizon, risk tolerance, and financial goals. The two most dangerous words in investing: “Market Timing.” Economic and market indicators you should watch: Economic: Inflation, Employment Cost , Producer Prices, Consumer Prices, Employment Purchasing Managers, Durable Goods, Industrial Production, Capacity Utilization, Retail Sales, Gross Domestic Product;
How to handle short-term financial goals: You can’t afford to take chances with short term goals. You need a safe place to put your money for a short time. Age-appropriate strategies for retirement planning: Includes components of risk tolerance and how your plan will shift as your time horizon approaches.
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