Bear Market
A bear market is a market that is in decline.
Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you our advice on the fundamentals of successful investing, including specific stock market advice. Each Investor Toolkit update gives you a fundamental tip and shows you how you can put it into practice right away. …read more »
When making investment decisions, chart reading seems much simpler than delving into and weighing the fundamentals. It appears to be a winning combo of moneymaker and time saver.
Some successful investors find it helps to know a little about charts. But if you rely on charts at all, you should look on them as just one of many things to consider …read more »
In a bear market, or stock market downturn like the one we are now in, investors spend a lot of time wondering about “the bottom”.
Sometimes, the market seems to turn around overnight, and the indexes quickly shoot upward. Other times, the indexes bump along near the bottom for months or even years.
Here are two consistent things about bottoms:
1. You …read more »
We continued to recommend BCE for the past year and a half, despite the risk that its $42.75 takeover might fall through due to the developing credit crisis and bear market. That’s because, either way, we felt BCE still offered an attractive investment opportunity.
Now that the possibility of a takeover (at a price anywhere near $42.75) has ended, BCE seems …read more »
On the Thursday before Thanksgiving, the S&P 500 index fell below its low in the 2000-2002 bear market. That left it 52% below its peak, and at its lowest level since 1997. Some chart enthusiasts took this to mean that a much bigger drop lies ahead.
My view is that if you pay any attention to chart analysis, you need to …read more »
As you can see, more than a quarter of our recommendations are U.S. stocks. We’ve long felt that Canadians should have around a quarter of their portfolios in U.S. stocks.
This advice helped moderate our readers’ losses in the bear market. The U.S. dollar bottomed out around $0.92 Cdn. a little more than a year ago, and is now around $1.23 …read more »
Despite the bear market underway in the U.S., the resources boom continues here in Canada. Some investors think it will keep on rising indefinitely, due to slower but continuing growth in India and China.
Resources prices may be headed much higher in years and decades to come, but they remain cyclical. That means you’ll see periodic collapses along the way.
We see …read more »
My guess is that we are now closer to the end of a market downturn than the start of one. However, you need to distinguish between the two main kinds of market downturn.
One is the stereotypical bear market — the kind of long-term decline that drags on for a year or more and is generally accompanied by a painful recession …read more »
Uncertainty over interest rates, oil prices and the Mideast situation has hurt world equity markets in the past few months. However, we feel that this is a temporary setback, and not the start of a protracted bear market.
These three investment firms earn much of their income based on the value of the securities they manage. Consequently, the recent downturn has …read more »
If the market is going to run into serious trouble, it often does so in the first half of a four-year Presidential term. Our last Presidential election was in November 2004. That made 2005 and 2006 the years when investors needed to watch out.
Several times since the fall of 2004, after a market downturn, investors wondered if we had entered …read more »
