Please AVOID cash during this bear market

When most people hear the bear market sirens, they run to hedge cash. But is it the smartest idea when inflation is over 8% and your cash accounts are still earning next to nothing? (That was a rhetorical question). Luckily, there is a better way to profit as the stock market (SPY) drops further and further. 40-year investment veteran Steve Reitmeister shares that with you and more in his final comment below….


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(Please enjoy this updated version of my weekly commentary from the Reitmeister Total Return Newsletter).

You know I’m bearish right now. And you know the reasons why, as they have been stated over and over again in the my last comments.

My solution to taming the bear market is a combination of 3 reverse stock ETFs and 3 short bond ETFs to make money as the market drops.

In fact, in June alone, the S&P 500 is down -11.07% while our strategy produced a gain of +5.04%. It is therefore clear that this strategy works.

At this time, you do not need more evidence to support this outlook and this investment strategy. Instead, what we need to do is eradicate 2 mistaken myths about the bear market from your mind because they actually harm investors.

Bear market myth #1: Hide in cash

For those bold enough to recognize the bear and take action… most of them believe their only alternative is to go cash. Yes, money is better than getting run over by the average bear market train taking an average of 34% of stock portfolios (and sometimes as much as 50%).

However, this misses the point that if the market is down, the best way to make money is to short the stock market. This means why just survive the bear market when you could thrive on big gains?

Allow me to go further. Right now, inflation is north of 8%. And your bank account is probably paying 1% or less. So right now, going cash is ENSURE a heavy loss from runaway inflation.

Bear market myth #2 right after that…

Your eyes don’t deceive you. This comment comes out a day early because Tuesday is a busy day for me as I present my “2n/a Market outlook for mid-2022at the Financial Answers Wealth Summit.

Yes, I’ll talk more about my bearish outlook… how much I expect stocks to go down… game plan to shorten our path to profits as well as when it’s time to fish the bottom.

Other investment experts like Gary Kaminsky, David Faber, Adam Mesh and many more join me at the Summit to share their best ideas for staying ahead of this crazy 2022 market. Gladly you can claim your free seating now…just click the link below to attend this vital investor event on Tuesday 6/21 and Wednesday 6/22:

Register for the Financial Answers Wealth Summit >>

Back to the article…

Bear market myth #2: You can’t time the market

There is some truth in that. It’s hard to predict what will happen tomorrow…or next week…or next month. But when you go back to the bigger picture, it becomes quite easy to align with the long-term trend of the market.

This means that when you’re in an extended bull market… then don’t sweat every little pullback and correction. Stay bullish with a collection of healthy stocks at attractive valuations (the POWR Rankings are your best friend in this regard). This will put you on the safe side of the action the vast majority of the time.

A bear market is really no different… just the other way around. When the long-term trend has turned negative, as it clearly has this year, you need to short stocks to make money. The easiest way to do this is with inverse ETFs (short selling individual stocks is just too complicated).

This market timing error originated from the money management community as a marketing ploy to prevent you from withdrawing your money from their funds. Because when you do that…they stop earning money from your account.

Yes, even if you lose 30-50% of your stock value in the bear market, they want you to sit still. And yes, they will still proudly take their 1% fee on your money in favor of their not-so-stellar tips.

In short, perfect market timing is not in the cards. But when you appreciate the main long-term trend, you can easily align your portfolio to be on the right side of the market action.

Adding it to the total, you now have a better understanding of our portfolio structure with 3 reverse equity ETFs and 3 ETFs to short the bond market. This is the right strategy now because there is a lot more downside to do in this bear market.

At some point when things look bleakest for the market is when we will start taking profits on these positions and start bottom fishing for the next bull market.

Just like winter…bear markets don’t last forever either. So you have to be ready for this change of season and employ the strategies that work best in this environment.

Again, the timing will NOT be perfect. But we can be efficient enough to ensure that we pocket large amounts of our bear market gains. And then align ourselves with the new bull market that will emerge.

It’s hard to imagine him now in the face of all this downward devastation. Yet, with over 40 years of investment experience, I have seen my share of these cycles and will help keep us on the right side of the market action.

What to do next?

Currently, there are 6 positions in my hand-picked portfolio that will not only protect you from an upcoming bear market, but will also lead to significant gains as stocks fall.

Like the +5.04% gain so far in June as the market fell into bearish territory.

This strategy fits perfectly with the mission of my Reitmeister Total Return service. That being to provide positive returns…even in the face of a roaring bear market.

Come discover what my 40 years of investment experience can bring you.

Plus, access my full portfolio of 6 timely trades to not only survive… but also thrive in this brutal bear market environment.

Click here to learn more >

I wish you a world of investment success!


Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
CEO, Stock News Network and Publisher, Reitmeister Total Return


SPY shares remained unchanged in after-hours trading on Monday. Year-to-date, SPY is down -22.73%, versus a % rise in the benchmark S&P 500 over the same period.


About the Author: Spandan Khandelwal

Spandan’s is a financial journalist and investment analyst specializing in the stock market. Through its ability to interpret financial data, it aims to help investors assess a company’s fundamentals before investing.

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