A reader asks: I hear we are in a bear market. What should I do?
I hear this question all the time:
In a bear market, what should I do?
The answer is simple, economical, perhaps surprising.
The answer is: Nothing!
In a bear market, do nothing!
Do not check the Dow Jones Industrial Average
or the S & P 500 Index.
Do not ask for stock quotes.
Look not at the Value Line or Barron's
or whatever you read for financial guidance.
Whatever you were thinking of doing,
don't do it. Do nothing. Do not take
your broker's calls, if you have a broker.
If you are a broker, take a break.
Go to a Yankee game. Bide your time.
Do not sell unless you have no choice
and do not buy unless your risk-tolerance is high
and you have some rainy-day cash to make
a long-term bet on some beaten-down
blue chip stock like GE!