US News: Advice to Ignore When Bear Market Finally Comes

Monday, 04 Aug 2014 07:09 AM

By Dan Weil

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
The bull market for stocks, at more than five years of age, already is one of the longest in history. So it would be wise to be ready for the next bear market before a stock market freefall happens and clouds your judgment.

U.S. News & World Report columnist David Ning offers three pieces of advice likely to echo during the next bear market that you should ignore.

1. "Someone will claim that buy and hold is dead, . . . and that you need to time the market to be successful," he writes. That's bunk. Most investors who try to time the market get burned, Ning notes.

Editor’s Note:
Get These 4 Stocks Before 399% Stock Market Rally!

2. "Financial pundits will say that this time is different," he says. "Don't let anyone fool you into thinking that a drop in stock valuations is permanent." Stocks have rebounded from every past decline. "Unless there's a catastrophe that permanently wipes out huge parts of the world, betting on the world stock market coming back to new highs is a very sure bet."

3. "Everyone will tell you that you had too little in bonds," Ning writes. But it's in bear markets that you should build your stock portfolio, so that you're buying low.

Many experts say the stock market is overdue for a correction, as the S&P 500 hasn't dropped 10 percent since October 2011. On Friday, the Standard & Poor's 500 index lost 5.52 points, or 0.3 percent, to 1,925.15. The index fell 2.7 percent for the week, its worst weekly performance since June 2012.

Brad Lamensdorf, manager of the AdvisorShares Ranger Equity Bear exchange-traded fund, tells Yahoo that a 10 to 20 percent correction already has begun.

"A lot of correcting is starting. It's just a matter of what it's going to take to get everybody scared enough to form a bottom," Lamensdorf notes.

Editor’s Note: Get These 4 Stocks Before 399% Stock Market Rally!

Related Stories:

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Meredith Whitney's Hedge Fund Reportedly in Turmoil

Saturday, 20 Dec 2014 11:43 AM

The hedge fund Meredith Whitney started last year after she became one of Wall Street's best-known analysts is in turmoi . . .

Yellen’s Patience Echoes Greenspan 2004 Run-Up to Rate Liftoff

Saturday, 20 Dec 2014 11:40 AM

Federal Reserve Chair Janet Yellen is taking a page from predecessor Alan Greenspan's 2004 playbook, a step that appears . . .

John Kasich 2016: 7 Key Political Positions of GOP Presidential Hopeful

Friday, 19 Dec 2014 22:22 PM

John Kasich has been involved in the national scene since the 1980s as a U.S. congressman and popular governor from Ohio . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved