Wednesday, July 23, 2008

Investing in a Bear Market!

If you only invest in bull markets the probability of making decent returns is limited. You generate greater return when you invest in a bear market. Here are a few pointers from some smart folks about investing in times like these.


"If a stock [I own] goes down 50%, I'd look forward to it. In fact, I would offer you a significant sum of money if you could give me the opportunity for all of my stocks to go down 50% over the next month."
Warren Buffett


"If you're serious about getting rich, now is the time. We've entered a period of mass-produced pessimism, when bad news is everywhere, and the best time to invest is when optimists become pessimists."
Robert Kiyosaki


"The answer lies in a phased, multi-quarter approach by investors that benefit from the following structural attributes: a high degree of capital permanency that steers clear of the need to finance sudden withdrawals; a willingness to take long-term views that can be sustained through wild market swings; and a process that accommodates opportunities that, in some cases, do not fit well into traditional classifications of asset classes."
Mohamed El-Erian


So what does all this wisdom mean? Don't panic, keep investing, find bargains, invest for the long term and stick to your plan. Remember you want to "buy low and sell high" and not the other way around.



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