I hope I’m wrong but I believe we are entering a full bear market and have instructed my investment advisor to act as such. The biggest reason that we are entering such a market is because the Federal Reserve is not artificially putting air (monies) into a bubble (banking) that shouldn’t exist in the first place. It is becoming more difficult for emerging markets to receive the capital they need at a decent rate and therefore they are unable to buy the products they would from us. The tax and over-regulation policies of Washington D.C are also causing us much difficulty. This is how I’m dealing with my prediction below.
(1) I’m moving monies from risky capital to conservative stocks that have been known to perform well even when the economy suffers.
(2) I’ve advised my investment guru to seek investment in strong corporate bonds.
(3) I also believe that Gold will be a better investment this year.
(3) Finally I’m putting capital aside to seek good deals in the market (undervalued stocks) and plan to hold them for the long term.