How To Invest in a Bear Market

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Don't hide in a cave when the market is down. Find stocks that will pay off when the bull makes its return.

To complete this How-To you will need:

Stocks at limit price below market
Small-cap stocks
Bonds
Dividend-paying stocks
IPOs
Currency of developed countries

Step 1: Don't buy stocks on margin, which means buying them with borrowed money. This is always risky, but more so in a bear market, when stocks tend to decline due to a sluggish economy.

Step 2: Buy currencies of mature economies, which may increase in value during a bear market because they often stay more stable during periods of decline.

Step 3: Buy stocks now at limit price below market, which means placing an order to buy stocks if and when they fall to a certain price. These orders come with a time limit.

Step 4: Sell any emerging-market stocks, which often do poorly when the world economy is suffering.

Tip: One rule of thumb is that the percent of your portfolio invested in bonds should match your age.

Step 5: Buy small-cap stocks, also known as emerging-growth stocks, which tend to go up in a bear market because they are not owned by mutual funds.

Step 6: Buy initial public offerings, known as IPOs. In a bear market, only the most financially sound companies have the luxury of going public.

Step 7: Sell your mutual funds, which tend to drop in a bear market because everyone is selling the same stocks.

Step 8: Play it safe with bonds and dividend-paying stocks, which usually offer steady returns.

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[kevn123xxx]

first! thumbs downs please

[Tyotyo999]

lol look at all the thumbs up.The human mind is easy to manipulate >:D

[CrossFire0073]

Oh I thought you meant bears you know the animal.

[ecke70]

Stocks really is not gambling. If it was why have some people over a long period of time (30+ years) made really good profits?

If you look at the likes of Buffet and Lynch they kney what they were doing and they buy great companies that payoff in the longterm.

But of course for a person who doesnt research his companies properly before investing, its a gamble

[rolfinator1]

buy in gold

[michaelsaunders77]

The real question: how do you know it's a bear market?

[timetraveler3797]

Buy metals, they can't be overprinted like paper currancies.

[ARMOROID5000]

Ummmm......

Buying stocks is really just gambling on a real boring game.

Don't bet what you can't aford to loose.

(Of course it's real fun to gamble with other peoples money, or as in america, other peoples houses!)

[ryanmi1995]

best in vesting in a place in china japan and Dubai that are still goin strong not the uk or america sorry us i love you really

[tobitobide]

thumbs down

[snoopyloopy]

not a good idea to invest in the dollar, as it's losing value vs. pound and euro still. while not as bad as last year, it's still pretty bad compared to a decade ago when euro was introduced. also, gold is at record highs, and the rising oil prices (which mean higher fuel prices) will surely put a big damper on any economic growth in america if they continue that way which will devalue the dollar again. not to mention the feds flooding the dollar market to keep economy afloat...