How do you make money in a bear market?

Originally Posted by Mr Nice
ETFs are very low cost and are very good for investors.



My ETF's probably lost more than the stocks did during the COVID-19 downturn.
 
Originally Posted by ZeeOSix
Originally Posted by motor_oil_madman
So although my stocks are slowly going back up, it's kind of like 2 steps forward one step back kind of thing, where before i could hold a stock for a month or so and make money. It seems like now I need to be buying and selling every 3 or 4 days to capitalize on the ups and downs. Opinions?


This is a whole new market. Hope, uncertainty and views of reality are up and down on a daily basis. Nobody - especially now - knows how to make money like they did over the last 10 years.



Well right now I've just been sitting tight. I haven't sold anything, but I did dump a whole bunch of available cash into things that were way down compared to what they were a few months ago, like boeing for example. Schlumberger is another one. I bought several shares at $13/share. It's sitting at $17/share now.
 
Originally Posted by motor_oil_madman
Originally Posted by ZeeOSix
Originally Posted by motor_oil_madman
So although my stocks are slowly going back up, it's kind of like 2 steps forward one step back kind of thing, where before i could hold a stock for a month or so and make money. It seems like now I need to be buying and selling every 3 or 4 days to capitalize on the ups and downs. Opinions?


This is a whole new market. Hope, uncertainty and views of reality are up and down on a daily basis. Nobody - especially now - knows how to make money like they did over the last 10 years


Well right now I've just been sitting tight. I haven't sold anything, but I did dump a whole bunch of available cash into things that were way down compared to what they were a few months ago, like boeing for example. Schlumberger is another one. I bought several shares at $13/share. It's sitting at $17/share now.


You've lost money on what you're sitting on (depending on what you bought it for before the crash) waiting for it to go up again with time as the economy recovers , and are making money on the stuff you've bought low. You're on the right track.
 
Inverse etf, like DOG. I'm in that, I think we are going to test the lows of March. However, I could be wrong. Basically, it's a crap shoot.
 
Originally Posted by Ws6
I am very new to the stock market, but so far am looking at nearly 100% return.

Leveraged ETFs are good if you don't want to try and pick winners and losers.
 
Buy when you think the price is good and don't worry about short term volatility. You're never gonna time it right so just be satisfied with a good buy in price.
 
I agree with warlord, don't torment yourself with the short term volatility. I pick a target weeks or even months away and just try to let it go. The market is amazingly slow to price in obvious things at times. For example, this downturn we are in right now. Markets are somehow continuing up, but I don't believe this will last.
 
For now it looks like the DOW has leveled off and now just seems to fluctuate day by day around the 24,000 level. When it's allowed for most everything to open back up and try to get back to "normal", then it will have another spurt upwards. It will take awhile for people who were very financially impacted to get to the point where they will want to purchase unnecessary things again (something that drives the market). There will be lots of financial impact that will hamper economic growth. When a successful vaccine comes out, it will really allow things to head back towards normal. This recovery is not going to be the typical "V recovery" like in past relatively short term market "crashes".

At that point, it's going to be a matter of what companies/businesses come out ahead of others based on the "new way of life" that will be probably last for quite a while. For instance, even if you look at the stock prices of say Boeing and Microsoft, it shows that Microsoft has recovered at this point much better than Boeing. Boeing for example (any anything commercial airline business related) will have a tougher time operating and recovering in the future than other companies. If trying to pick and choose companies to invest in is your thing, this is the time to do it to try and choose companies that will have an easier time to recover, but there is always more risk picking and choosing. Companies will also "morph" to a certain degree to try and make their recovery more successful, which makes it even harder to see inside the crystal ball.

DOW
[Linked Image]


Boeing
[Linked Image]


Microsoft
[Linked Image]
 
I went all in about a month ago. Mostly index ETF and a couple stocks that got hit hard by the drop, that should bounce back to prepandemic levels, eventually. If it drops further, whatever. I just continue to make weekly purchases of my ETFs spread across world markets. Building wealth, not trying to "make money". My investment strategy follows The Wealthy Barber, and the Couch Potato method.
 
Last edited:
Originally Posted by mightymousetech
I went all in about a month ago. Mostly index ETF and a couple stocks that got hit hard by the drop, that should bounce back to prepandemic levels, eventually. If it drops further, whatever. I just continue to make weekly purchases of my ETFs spread across world markets. Building wealth, not trying to "make money". My investment strategy follows The Wealthy Barber, and the Couch Potato method.


I think a lot of companies have cut their dividends. Other than schlumberger I haven't received a dividend in like 2 months.
 
I am not able to forecast the market right now, so I just let my dollar cost averaging do its thing while I focus on what I can control instead.

Since I also don't know what to do with the money I am not spending at the moment, I pay off extra on my mortgage, so that's saving interest payment, and I cancelled my comprehensive and collision insurance on my cars, that's saving money.

I'll also spend my free time learning new skills for my future career, that's something I can control.
 
Originally Posted by PandaBear
I am not able to forecast the market right now, so I just let my dollar cost averaging do its thing while I focus on what I can control instead.

You win Comment Of The Day!!!!!
 
Originally Posted by PandaBear
I am not able to forecast the market right now, so I just let my dollar cost averaging do its thing while I focus on what I can control instead.

Since I also don't know what to do with the money I am not spending at the moment, I pay off extra on my mortgage, so that's saving interest payment, and I cancelled my comprehensive and collision insurance on my cars, that's saving money.

I'll also spend my free time learning new skills for my future career, that's something I can control.


I always invested money automatically every month in a mutual fund. When cash would build up in my checking account, I'd just move it to my Fidelity account and invest it.
 
Originally Posted by BlueOvalFitter
You sell bears in a market?


The bear left though.
 
Originally Posted by AC1DD
Be an insider like always. The market is a fraud.


You sound like the disenfranchised. Never been an insider, just invested what I made. Markets aren't predictable, but I never felt it was a fraud. Made lots of money, lost lots of money too. Made way more than I lost though.
 
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