Investors who followed that advice on Tuesday came out of the attack in pretty good shape. Back in 1987, investors who panicked and tried to run away from the bear market were the ones who got hurt. The best way to whomp a bear is to beat it at its own game. Bears attack when they sense fear. So smart investors prepare for the battle by calculating the risks and rewards of the confrontation.
Most bears try to win their fights by intimidation.
After all, a giant, hulking, roaring animal can scare just about anybody. But the temptation to run could be fatal. History tells us that bulls win most of their battles with bears. The same book offers advice on what to do if you encounter a stampede of bulls. So, in summary, lie still if a bear attacks, and when the bulls stampede, keep moving.