Prepare Now and Survive the Coming Bear Market: This Time is Not Different by Michael Sincere & Mark Cook

Author:Michael Sincere & Mark Cook [Sincere, Michael]
Language: eng
Format: epub, mobi
Publisher: Sincere Books, LLC
Published: 2015-01-06T00:00:00+00:00

Conclusion

by Michael Sincere

Mark Cook has witnessed several bear markets in his career. Mark not only survived these environments but also profitably traded during the collapses of 1987, 2000 and 2007. In all three, investors who held on to their long positions as the bear markets unfolded saw their portfolios get crushed.

Most investors were unable to heed the warning signs and get out before share prices plunged. Many simply held on until the bloodbath was nearly over. Then they finally surrendered and sold at or near the bottom of the crash.

Mark and I wrote this book to help you avoid making these costly mistakes. Hopefully, reading the interview with Mark has enabled you to understand the warning signs that a bear market is imminent. Mark is confident that these signs have become more and more clear.

You may be wondering what you should do now.

1. First, you can disregard Mark’s warnings and hold on to your long portfolio. The risk is that if Mark is right, your portfolio could decline by 20 – 30 percent or more. Are you comfortable taking that gamble?

2. If you are unconvinced by Mark’s analysis and remain bullish, you could keep buying stocks. Should the bull market continue, you will be very glad that you disregarded his warnings. However, if Mark is right, your losses will be even greater than those who simply held their long positions.

3. If you find Mark’s analysis to be persuasive, the wise thing to do is seriously consider selling much or all your stocks to lock in your profits. If you have specific positions where you have paper losses of more than 10 percent, you might want to close out your positions before your losses mount.

If you do sell some or all of your stocks too soon, you risk the ridicule of your friends and colleagues. Can you handle that? Think about those investors who did sell early during those last three major crashes. They probably had the last laugh.

4. The final choice is to sell your long positions and attempt to profit from the bear market plunge. This would require another book to discuss in detail (one suggestion is to read my book, Understanding Stocks 2E), but here are other ideas: You may sell short (only for experienced traders), buy non-leveraged inverse ETFs, or buy put options. Keep in mind that if you do use any of these strategies, you must take profits quickly. Because bear markets are so volatile, few investors make it to the Winner’s Circle. Now that you have read this book, you will be better prepared.

Finally, I want to applaud you for purchasing this book. It is my hope that it will help protect you from what we think is an imminent financial bloodbath. Good luck, and feel free to write me at [email protected] if you have any questions. I look forward to hearing from you.

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