We can’t manage money the same way in a bear market as we do in a bull market. Buy and hold strategies generally work very well in a long term or secular bull market. They might experience some small pullbacks, but overall the climate is growth and expansion so taking little hits along the way isn’t devastating.
However, in a bear market, those same strategies can be dangerous. “Riding it out” doesn’t necessarily work. In a bear market, you really need to look at which investments will offer growth – guaranteed growth – to protect your money both short term and long term. Mutual funds, which might have worked for you in a bull market, for example, don’t offer the safety you need in a bear market.
If you’d like to learn about bear market strategies and how you can earn 6 to 8% returns on your money in our current economy, listen to my weekly radio show on KBRT 740 AM (Saturdays @ 1 pm PST, http://kbrt740.com) or call me for a free consultation. I’d love to show you how to protect your hard earned money from the ups and downs of the stock market.