Unfortunately, those guys on TV who report that people always make money in the stock market, were wrong DEAD wrong. After the 1929 Crash Came the Great Depression In a stock crash, everybody loses. Week after week we've watched our warnings come true in high tech stocks. But, if you think things can't get worse in a bear market, then listen to this. In fact, we could see a decline from a high of 12,000 to Fridays 9,500 range, way down to the 7,000 level or lower.
Bear markets can get really ugly across the board touching almost every stock.
Buy and hold is not the right strategy in a bear market. It's time today to carefully balance and diversify your portfolio. Many investors need to sell down their holdings of paper assets and make a careful move into hard assets. Obviously the key to investing is to buy at the bottom and sell out somewhere near the top. When investors finally lose confidence in their own research, when they're tired of hearing excuses from their stockbrokers, when their Mutual Funds just fizzle, investors will search for safer and more conventional ways to invest.