I'm comfortable
buying in bear markets, but I've still felt bad about losing money.
Buy in a bear market and sell in a bull market.
Not exact matches
The recent
market sell - off is putting a dent
in many large - cap Dow components, which are now sitting
in bear market territory, but here's why two of these laggards may be worth a
buy.
Normally this would put remarkable pressure on the price of gold — higher yields raise the opportunity cost of
buying gold — but over the same period, the U.S. dollar has steadily weakened and is now officially
in a
bear market.
So unlike brokers, we have no conflict of interest pushing us to recommend high volumes of trades whether we believe
in the potential of those trades or not We have no perpetual bias for a bull
market as most of Wall Street has to be (to justify the heavily - weighted stance of «
buy» vs. «sell,» a stance that always persists even
in harshest
bear markets) Instead of all of these kinds of anti-investor establishment motivators, we will sell our products on subscription, with a customer - friendly, overwhelming motivation to deliver an experience that will win very profitable renewals for many years to come.
Nor are we seeing aggressive
buying from value investors (the rightful owners to whom stocks always return
in a
bear market).
This way, if a
bear market occurs, you have a year of cash becoming available at the maturity date so that you do not have to sell stocks, and
in a bull
market you can
buy new bonds as the ones you own mature, and you thereby benefit from the higher interest rates that high quality bonds give versus cash or CDs.
However, although sharp corrections are somewhat rare (they have only occurred
in nine years since 1962), they have happened more often during bull
markets than during
bear markets, and thus have often presented
buying opportunities historically.
Why trying to avoid a
bear market can be a costly mistake for stock investors Double - digit gains have historically been seen
in the 12 months leading up to a
bear marketTrying to correctly time the
market is a near - impossibility for any investor, and the potential mistakes are just as severe whether you're trying to sell high while you can, or
buy low.
We were
in a clear
bear market 2 weeks ago, when I told you to
buy NEO!
If you shift to
buying value stocks late
in the bull
market, by the time a
bear market comes, your portfolio will have a larger weight
in relatively safe, value names.
(The unfortunate opposite of
buying more heavily
in bear markets).
If you want to ensure you get the big returns from stocks that investment writers highlight when urging you to invest
in equities, you need to
buy during
bear markets to make up for the lousy returns from those years when you
buy at what proves to be the top of a bull
market.
If you
bought VYM at the bottom of the
bear market in 2009 and held through summer of this year, your total annualized return would have been roughly 16 %.
Investors can brace for a downturn by
buying shares of companies that can thrive
in both bull and
bear markets.
But
in bear markets, my strategy is a combination of selling short former leadership stocks as they break down (click here to see how it's done) and
buying ETFs with low to nill correlation to the equities
markets (such as commodities, currencies, fixed - income, and international).
If stocks enter into a new
bear market in 2015, it would obviously bad news for traditional «
buy and hold» investors who must hope and pray that stocks continue on an upward trajectory forever (hint: they don't).
As much as i want to
buy buy buy, I think I'm going to
buy with caution for this might be the beginning of a greater
bear market and if i spend all my capital now i may not have any more for any other potential deals to come
in the future.
As the secular
bear market drags on, investors become more and more discouraged with their
buy and hold positions and they begin to lose faith
in the system, their strategy and stocks
in general.
Some reasons to think a
bear market may not be
in the
market's near future include low inflation and a relative lack of leverage (i.e., debt that is used to
buy assets) that might be expected to exacerbate a downturn.
The investment fund transactions show the
market is becoming interested
in the stock, and while the
buys are still very low, at around 0.29 %, one should
bear in mind that Maserich had not been previously considered as something valuable at all, so even such a small
buying volume may boost future performance.
Let's not forget that
in BEAR markets previous / current supports (
buy lines) end up being broken.
Once again buyers stepped
in to
buy the pullback and reverse the tables on
market bears.
Here's a letter to the board of Biglari Holdings re: executive compensation [Noise Free Investing] & then more thoughts on Biglari's compensation agreement [My Investing Notebook] Where things stand
in the
market [Bespoke Investment Group] A list of stocks Nasdaq is canceling trades
in from yesterday's madness [Business Insider] The best interest rate chart
in the world [Trader's Narrative] A great macro overview from Barry Ritholtz [The Big Picture] A look at John Paulson's possible ownership of
Bear Stearns CDOs [Zero Hedge] John Mauldin on the future of public debt [Advisor Perspectives] Top
buys & sells from Morningstar's ultimate stock pickers [Morningstar] The truth about «Sell
in May & Go Away» [WSJ] An interview with hedge fund manager Hugh Hendry [Investment Week] Bill Ackman: Let's have a public registry for stock opinion [Barron's] Hedge fund Harbinger hires ex-Orange chief for wireless plan [Dealbook] & Deutsche Telekom has been
in talks with Harbinger [FT] Hedge funds begin to restructure fee system [FT]
Furthermore, I believe
market timing can be the greatest detractor to our long - term returns whether we become overly pessimistic and sell into
bear markets, catch the irrational exuberance bug and
buy into the end of bull
market rallies, or sell out too early
in bull
markets and miss some of the best years
in the
market.
Conceptually,
market timing is simple,
buy during
bear market lows and sell
in bull
market highs.
Having seen the share
market's ups and downs since he started
buying shares
in the 1960s, share
market 85 - year - old trader Frank Hirst knows a thing or two about the
bears and the bulls.
Remarks: Due to their conceptual scope — and if not explicitly stated otherwise — , all models / setups / strategies do not account for slippage, fees and transaction costs, do not account for return on cash and / or interest on margin, do not use position sizing (e.g. Kelly, optimal f)-- they're always «all
in «-- , do not use leverage (e.g. leveraged ETFs), do not utilize any kind of abnormal
market filter (e.g. during
market phases with extremely elevated volatility), do not use intraday
buy / sell stops (end - of - day prices only), and models / setups / strategies are not «adaptive «(do not adjust to the ongoing changes
in market conditions like bull and
bear markets).
An important observation that Mr. Napier makes
in his studies of the most damaging
bear markets is that even if the initial move off of the bottom is lacking volume, once a new higher level is reached, the
market should begin to attract
buying interest.
Look at what almost destroyed the banking industry along with the housing
market back
in 2008 happened precisely because people
bought in at a low - interest rate and forgot that
in a short period of time 4 to 5 years the rate would then go up to whatever the
market would
bear at the time.
In a falling
bear market, slowing momentum could suggest that the price is near a support level and traders are looking to
buy at a bargain, which could reverse the
bear trend.
The same rule can apply when adding /
buying stock
in the depths of a sustained
bear market after a severe equity valuation reduction.
It probably won't yield the best results
in a strong bull
market, but it will yield better results than a
buy - and - hold strategy
in a sideways or
bear market.
Technically, while the stock is
in a
bear market (its 50 - day moving average is below its 200 - day moving average), it did just flash a «
buy» signal on the MACD, which is a momentum indicator.
Rather than simply
buying and holding, many active managers try to predict when securities are over - or undervalued, moving
in and out of positions to avoid
bear markets and profit from any subsequent bull rally.
Anyone with
market experience will recognize the culprits: panic selling
in a
bear market, chasing after «hot» stories
in a bull
market, selling low and
buying high... all of these are quantified
in the above table.
The appeal of
buying puts is that they can help manage risk
in a volatile
market or one that seems to be headed into
bear territory.
Cash is an important asset category to protect your portfolio
in bear markets, and provide capital to
buy assets when they are at bargain values.
A broker won't lose money when a stock goes down
in a
bear market because the broker is usually nothing more than an agent acting on sellers» behalf
in finding somebody else who wants to
buy the shares.
It's easy to imagine that happening
in a
bear market, when investors are no longer
in a
buying mood.
The cost averaging principle allows investors to
buy more units
in bear markets and fewer units
in bull
markets.
If you
bought VYM at the bottom of the
bear market in 2009 and held through summer of this year, your total annualized return would have been roughly 16 %.
A little extra cash will help
in two ways 1) Cash won't decline
in the next
bear market, and 2) you can use it to
buy when the
market is down.
On the S&P 500 chart, such timing maneuvers — while ultimately counterproductive from a pure profit standpoint (because the investor is
buying in at about a 12 % higher price than where he or she sold)-- could almost be understood, given they would have spared an investor the emotional pain of the
bear market.
Recently, I thought I'd put more money into the account to
buy more stocks since the
market is
in a
bear phase.
It's easy to be a
buy and hold person
in a Bull
market, but not everyone can do it
in a
Bear market.
Rather than treating ownership as a short - term vehicle for profit
in the mode of a day trader,
buy - and - hold investors retain shares through bull
markets and
bear markets.
«
Buy and hold» is always lionized
in a bull
market, and castigated
in a
bear market.
I view it as a great sign of strength that,
in the worst financial
markets since the Great Depression, your company could earn money, grow tangible book value,
buy Bear Stearns and WaMu and expand our franchise.
But if you sell your stocks
in a
bear market, this might mean three things: (i) You may be selling your stocks at a loss; (ii) You are making no gains nor loss, meaning that you are selling the stocks at a price at which you
bought the stocks; or (iii) You are selling at reduced gains.