Bear Market Coming Soon?

January 22, 2008

Those of you have follow my blog regularly, you guys would have know the bear market is coming. A few months ago, I was shooting down the financial sector. I was careful on the strength of the technology sector. As i mention before, if the technology sector start to fall, the market will press the panic button.

Just some Warning !!!

Please do not catch the falling knife. This mean that if the market is falling down, please do not buy and think that it is a bargain especially if you wanna buy and hold for long term. When the market is falling down, there will be some bargain hunter and novices around to push up the downfall a bit, but the fall will be greater after the push. If you are not a day trader or swing trader, then you are most likely to be in risk.

Ride with the wave … if the market confirm to be a bear market, just shot all the way down. If you are not comfortable in shorting the stock, then park your money in somewhere safe (please do not park in gold or oil as they are already peaking) and wait till the end of bear market.

A bear market is always good for the whole economy since we already have 5 years bull market. A healthy market/ economy will go through many boom and recession.
Some sector that are recession proof are …

- Tobacco
- Health Care
- Consumer Staple
- Beverage and Alcohol