Over 32 years of managing money professionally have taught me a few lessons on how to successfully navigate a bear market. Taking my playbook from the 2001 and 2008 market crashes, I recently conducted a seminar for the MoneyShow covering bear market strategies. In that presentation, I outlined the process I have successfully used to limit the risk, and profit in the Equity Platforms we manage at ValueTrend Wealth Management.
The process involves identifying and then properly positioning your portfolio during each of the 4 stages of a market:
- Bull: Investing the uptrend is the easy part, but you need to have a method of spotting trouble ahead.
- Bear: Identify the bear and its typical patterns. Learn to position your portfolio defensively and be ready to take advantage of new opportunities
- Bottom: A crucial step in preserving wealth in a bear is to avoid buying into head-fakes and false bottoms.
- Bounce: Key rules to follow to increase your chances of buying cheap stocks at the right time.
One of the important steps in playing a bear market is seizing the opportunities it presents – at the right time, of course! In the seminar, I covered the process I used to profit during the 2008/9 bear market by identifying when to raise cash, and then when it was safe to go back into the water. ValueTrend is once again successfully applying our bear market strategy outlined in the 4 steps above. As a follower of this blog, you know that in 2020, I was one of the very few portfolio managers to identify and prepare for the non-transient nature of this inflationary environment. You also know that early this year I began warning you of a probable bear market and how to prepare. This, when few other investors were aware of that potential.
This isn’t crystal ball or personal clairvoyance, folks. It all comes down to rule-based analysis. This seminar will help you understand, and trade within, the four stages of a market using unemotional rules. Bull. Bear. Bottom. Bounce.
Many of you have contacted me asking when the video would be released. Well, here it is! I strongly recommend all readers of this blog watch this 30 minute webinar. You will need to register to watch it if you have not attended a MoneyShow event or video in the past. Here is the link:
