Bear Repellent For Your Stock Portfolio | Seeking Alpha

Bear Repellent For Your Stock Portfolio | Seeking Alpha



Eric Parnell has written another great article about preparing for a bear market.  We don't know when it is coming, but Eric is right that the next bear market may really be worse because the Federal Reserve has already spent a lot of its bullets to kill the past bear market.  So, investors cannot count on a quick recovery of their money once the market goes down again.



Secondly, Eric mentioned three outstanding stocks that hold up well in bear markets.  I especially like Procter and Gamble (PG) and McDonald's (MCD).  In the last bear market, Procter and Gamble stayed positive for months while the S&P was falling.  In fact, the S&P was already down -20% before PG had a sustained dip below zero.  So, if you had been comparing this chart diversion between the two stocks, you would have had plenty of warning to head for the sidelines.  Moreover, McDonald's did even better.  It only went below zero a short time while the S&P 500 fell around 55% to the bottom.