Comments on: What Have I Learned from this Bear Market?

By: Mark

Mark — Thu, 01 Jan 2009 22:37:23 +0000

All good points. I am glad that some good thinds have come out of this bear market.

By: Alin

Alin — Sun, 28 Dec 2008 17:56:46 +0000

That’s right! Very good article Frugal! And I think it is room for even more downside in the stock market. Why? Because the outlook for 2009 is not so good. I wrote more about that here http://think.rentacar10.eu/?cat=4 You can check it out.

By: Mark Wolfinger

Mark Wolfinger — Fri, 12 Dec 2008 15:06:10 +0000

Hedging is essential – in good times or bad.
Conservative strategies, using stock options – are the best tools available.

By: Kam

Kam — Sun, 07 Dec 2008 05:49:42 +0000

I learned to use a tight stop losses in a bear market. I learned how to believe in bonds and T-Bills. I learned how to step to the side line and not to jump into any stock before doing lots of research. Fluctuation in gold prices was a good time to trade gold.

By: Will

Will — Fri, 05 Dec 2008 15:52:38 +0000

thanks for the information i will apply that.

By: Will

Will — Fri, 05 Dec 2008 15:50:39 +0000

interesting site it really learns me a lot.

By: WeSeed Writer

WeSeed Writer — Thu, 04 Dec 2008 17:14:09 +0000

That history repeats itself. And then it does it again and again. That’s at least some consolation to all the stuff going on right now. It has happened and will continue happening. But so will the recoveries.

By: Scott

Scott — Thu, 04 Dec 2008 01:28:54 +0000

@ Sonny: of course we haven’t learned anything — EVER!!! Well, except maybe that the Earth really is round and not flat. Why do you think the world is the way it is? The only thing we have learned is how to slop the sheen of sophistication over our basic human instincts and traits (eg. fear and greed). Don’t forget (or now learn) that the markets are merely a function of human behaviour.

There will come another Bull and yet another Bear, all linked with bubbles and crashes and booms and busts. Life will go on. You’ll tell your grandkids about the Crash of ‘87…and ‘00…and ‘08…and…well, you get the point.

What did I learn?: You get what you pay for.

By: Craig

Craig — Wed, 03 Dec 2008 21:46:40 +0000

Good advice and I’m sure like anything else, it will only educate you further in the future when things get better again. Help have a more long term outlook and be proactive in the future.

Craig
http://www.budgetpulse.com

By: John Doe

John Doe — Wed, 03 Dec 2008 20:27:13 +0000

Know your stops and stick to them….especially in a bear market with exceptional uncertainty.

By: Geoff

Geoff — Wed, 03 Dec 2008 20:22:54 +0000

Sonny: I think yours is the best answer yet!

By: Sonny

Sonny — Wed, 03 Dec 2008 19:50:25 +0000

I’ve learned that we haven’t really learned anything We said we learned something when the tech bubble burst. Back then we thought we could buy anything with .com and the stock would go up. Then when the bull came, we bought anything with oil or real estate.

By: Mr. ToughMoneyLove

Mr. ToughMoneyLove — Wed, 03 Dec 2008 18:33:24 +0000

I’ve learned to re-direct my free cash to a sure thing investment: paying off my mortgage, giving me a guaranteed 6% tax free return.

By: Geoff

Geoff — Wed, 03 Dec 2008 18:15:11 +0000

I’ve learned (and re-learned) that:

1) one man’s bear market is another man’s bull market
2) portfolio theory is hogwash (risk models, etc.)
3) if you create regulations, people will go around them
4) you have to let things fail
5) paper is nothing. tangibles are everything
6) debt is to be avoided at all costs, savings a must

By: Rocket Spanish

Rocket Spanish — Wed, 03 Dec 2008 17:15:31 +0000

I think most people would also learn that even though they say they are doing a buy and hold strategy, it is easier said than done, because the moment you see your stocks falling the rules change even for experts

By: FearLES

FearLES — Wed, 03 Dec 2008 15:46:07 +0000

I also learned that maybe you shouldn’t wait for the real killer bad news before getting out. We all knew that something was going to burst in the US, we just didn’t know if was this big or this inter-connected.

By: FearLES

FearLES — Wed, 03 Dec 2008 15:37:34 +0000

I learned about the catching falling knives and dollar-cost averaging as I made a sizable first stab at the Smith Maneuver in the first week and a half in November and have seen things drop since then… on the other hand you can’t time the bottom so do it in steps. That said I am still happy with what I bought.

TCK.B is an exciting stock… too bad about the dividends but they will rebound as they are really cheap now.

By: Yikes!

Yikes! — Wed, 03 Dec 2008 15:11:18 +0000

I have learned that this is not the time to be playing games in the House of Commons.

By: Nurseb911

Nurseb911 — Wed, 03 Dec 2008 14:32:41 +0000

I’ve learnt that effective diversification (not so much asset allocation, but sector) can do a lot of good in helping to minimize overall negative performance of a portfolio. Over the long-term this will be a buying opportunity for an individual such as myself, but staying rational is difficult and will test your will no matter your discipline or patience.

By: Finance_Addict

Finance_Addict — Wed, 03 Dec 2008 14:29:01 +0000

I’ve learned to always consider the worst case scenario when making an investment decision.

I’ve also learned that nothing is out of the question when things turn bad (i.e. 50% drops, dividend cuts on stable companies etc.)

I’ve learned to not trust almost everything I hear of read regardless if it’s from a so called expert or a company CEO.

I’ve learned that the saying “When it rain it pours” can feel real in times like these.

I’ve learned the hard way to be more disciplined with my risk vs. reward choices.

I’ve started to question what really moves markets in time like these. Option trading?

I’ve learned that I refuse to sell low and give my money away. I’ll hang on the for the ride.