Sunday, March 15, 2009

Weiss' 11 Laws of Bear Market Success

Martin Weiss just released a video highlighting 11 Laws for Bear Market Success. Here they are:

The 11 Laws of Bear Market Success
By Martin Weiss, Claus Vogt, and Mike Larson

1. Protect capital; keep ready store of cash; get rid of losers
2. Use common sense
3. Don’t count on the government to boost your investments. Use government-inspired rallies as opportunities to sell.
4. Invest exclusively in liquid, easy-to-sell investments.
5. Stay flexible: expand your horizons beyond traditional investment strategies.
6. Use investments that move independently of stocks and bonds (currencies, gold).
7. Find special situations that go up despite a bear market (Ex. Companies that are virtually depression-proof)
8. Use investments that go up because of a bear market (Ex. Inverse ETF’s).
9. Balance your portfolio: even in a bear market, don’t bet exclusively on the downside.
10. Don’t fall in love with your investments: Take profits along the way and roll them into new opportunities.
11. Be a contrarian! Buck the crowd!

To watch the video:

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