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Richard's Remarks

 

Just because I called or identified this bear market, I don't want subscribers to think that I enjoy bear markets or enjoy writing about them. Bear markets exist and follow bull markets just as night (personally, I never liked the night) follows day.

 

I think it's of utmost importance to understand bear markets and the difficulties they can cause. The only thing worse than living through a bear market is to be caught unprepared during a bear market.

 

In general,

 

(1) You should be out of stocks in a bear market. If you insist on speculating in a bear market, my suggestion is that you buy out-of-the-money puts on selected stocks rather than attempt to short individual stocks. The reason is that shorting is a professional's game, and it requires steely nerves and exquisite timing.

 

(2) Where at all possible, get rid of your debt. Since money or income is much more difficult ... Log in or subscribe to continue reading.


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