Saturday, June 28, 2014

2008: How To Avoid A Common Bear Market Mistake | Seeking Alpha

2008: How To Avoid A Common Bear Market Mistake | Seeking Alpha



Chris Ciovacco has written another excellent article about why we should not panic in the 2014 stock market.  He showed a chart of today's market compared to the beginning bear market of 2008. Even while talking heads were predicting a good year in 2008, the bear signs were already there in Chris's chart along with the famous death cross.



As for today's chart, we are nowhere near signs of trouble.  Pullbacks should be buying opportunities.  XLU, the utilities ETF, is one stock I plan to buy on stock market declines of less than 10%.  I do hold a bond stock (TMF) just in case the market falls hard, though.  Chris owns TLT himself which is the 20+ year treasury bond ETF, but it is only a small position.  TMF is a 3x version of TLT.  So, most of our money should be on long stocks currently until the economy starts to fall.


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