Should an investor buy or sell during a bear market.?

Question

Looking to partially retire next year and not wanting to get out of the market but nervous about the future trends.

Answer 1

Very tough market right now.  A bear market can last for several years sometimes.  That doesn't mean that everything goes down, but it does mean that making money can be quite difficult.  Sometimes not losing money is just like making money when it comes to investing.  Considering your age and retirement goals I would play it safe.

Municipal Bonds are paying out dividends of 4-6% that is tax free.  Those are pretty good returns and they are historically considered very safe investments. (Bonds written by state and local governments)

Good luck!

Answer 2

sell

Answer 3

I guess you missed the sell in May and go away ritual. We are facing a Bear market with no place to hide. the best thing to do now is to ride it out. By Sept. the worst should be behind us. Its all emotions right now. there are still some good plays but wait until the market bottoms around 10,000. In the meantime I'm staying on the sidelines.

Answer 4

I would first consult your accountant.  If you have some losing positions you can possibly take a loss.  If you own some stocks that pay nice dividends, you may want to hold onto those.

Unfortunately, your timing is not great here.  Long term investors should consider buying at times like these, rather than selling.  

Scott Cole

www.kungfutrader.com