The Next Bear Market: How To Protect Your Assets | Seeking Alpha

The Next Bear Market: How To Protect Your Assets | Seeking Alpha



Chris Ciovacco has written another great article on the stock market comparing predictions for the future of stocks to the weather.  Neither one can be predicted accurately beyond the short term.  So, you need a system of stock and bond buying that works in increments.  If all the market's main moving average lines are pointing upward, then stocks should get most of your money allocation.



Charts do indeed matter because the fundamentals are underneath the surface of the moving average lines.  As Chris mentioned, weather cannot be predicted accurately beyond eight days.  The same is true of stocks also.  That is why you take a low moving average line like 13 to make an incremental change in certain stocks.  For a major average, the early warning might be the 50-day line.  Changes should not be all or none.  As one person commented, a lot of money can be lost trying to prepare for a bear market.  If you are on the sidelines while the market is going up, you are losing money and limiting your retirement final total.