The topic of my book “The Great Super Cycle” is that the U.S. stock market is in the midst of a long-term, secular bear market.
This is similar to the 1970s, or 1930s and 1940s, when the market didn’t go up for a long period of time.
Because of this thesis, you would expect me to be a dour “permabear,” looking for crashes and thinking that people shouldn’t make money longer term.
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Nothing could be further from the truth. There is an old adage on Wall Street that “bulls make money, bears make money and pigs get slaughtered.”
I actually think bears get slaughtered as well.
Sure, there are years such as 2008, which bring great opportunities on the short side.
However, look at all of the great billionaires in the world, such as Bill Gates, the late Steve Jobs or Warren Buffett. Did these individuals make their fortunes by having a dour or negative outlook? No!
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I have seen many people looking for a repeat of 2008 in 2009, 2010, 2011 and now 2012. These individuals just don’t get it.
The year 2008 was a massive deleveraging and an once-in-a-lifetime event. It also led to a great buying opportunity. I can’t tell you how many cheap stocks went up five, 10 or even 50 times from 2009 to 2011.
There will always be opportunities, you just have to patiently wait for them — and then, more importantly: take advantage of them.
Right now, there are values brewing in emerging markets, precious metals and commodities. Investors should start to look toward these beaten sectors to take advantage of cheap valuations.
My advice for 2012: Make a resolution to not be a bear, but rather a value investor who looks for opportunities and takes advantage of them when they arise.
About the Author: David Skarica
David Skarica is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He also writes the Gold Stock Adviser. Discover more by Clicking Here Now.
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