2006-07-13 10:06:49 · 10 answers · asked by rusty_bulldog 1 in Business & Finance ➔ Investing
selling CALLS or buying PUTS or use the Profunds or Rydex short funds
2006-07-13 12:53:56 · answer #1 · answered by Anonymous · 0⤊ 0⤋
making money over what kind of time period? tomorrow? ten years? 30 years? it's too open ended of a question. it all depends on your investment objectives and when you hope to reach them (other than "as soon as possible," which is what we all want... you have to have an actual game plan though or you'll just twist in the wind).
short selling is a great strategy for 3-18 month trading (imo). you really don't want to stay short for too long becauase, as was said, you can get hurt very quickly. many industries are currently hitting their next business cycle, so while many will fall many will rise. the ones just beginning their fall (based on their last 3-6 months) is where you want to sell short. have an idea in mind where you want to buy back (based on the return you want) and hit the button no matter what. winning is always better than losing, i don't care if it's by 1 point or 15 points.
if you're looking more long term, with less risk, mutual funds are the way to go. industry experts make all of these decisions for you and it is still possible to achieve yearly returns of 12%-18% depending on fund performance. not to mention, with over 20,000 MF currently on the market, not a one has ever gone belly-up.
2006-07-13 18:25:26 · answer #2 · answered by Choose Life 3 · 0⤊ 0⤋
Selling short is one way but is very risky and there is no limit to amount of money you can lose if the stock goes up. The best way is to buy stocks that run contrary to the market, like gold or silver mines (VGZ is one). When the market goes down, like today, these stocks rise and the risk is only what you paid for the stock. Good luck.
2006-07-13 17:52:11 · answer #3 · answered by cyclist 3 · 0⤊ 0⤋
some would say that if we all knew it was a bear market, wouldn't the market be lower already? for every seller, there's a buyer who thinks he's buying low and selling high.
Assuming you're correct, then 'selling short' is good. (selling what you don't own today and buying later to make up for it when prices are even lower). If you are really into gambling, you can consider purchasing put options and/or selling call options.
2006-07-13 17:45:00 · answer #4 · answered by Brand X 6 · 0⤊ 0⤋
Buy a short fund
BEARX is at 2 year high today, another short fund is GRZZX
don't stay for too long though, the market can turn up very rapidly and short funds lose value then
2006-07-13 18:03:54 · answer #5 · answered by -* 4 · 0⤊ 0⤋
There are many ways...most experts tell you to look for dividend paying companies. Dividends can help to cushion the blow.
Bear markets are driven as much by emotion as economics. So, basic investing sense is to look for stocks with low price to earnings trading near their lows but with other strong fundamentals.
There's lots of good reading on pay sites that provide some freebies such as motleyfool and thestreet...
2006-07-13 17:16:17 · answer #6 · answered by Brian M 1 · 0⤊ 0⤋
By a bunch of stock the day before it becomes a bull market. That is guaranteed to make you lots of money.
2006-07-13 17:32:48 · answer #7 · answered by devildog29 2 · 0⤊ 0⤋
Get a patent on bear burgers and talk to McDonalds.
2006-07-13 22:04:37 · answer #8 · answered by Dean B 3 · 0⤊ 0⤋
going short,as the stock drops u make money
2006-07-13 17:12:41 · answer #9 · answered by chevyman502 4 · 0⤊ 0⤋
Selling bears? I have no clue.
2006-07-13 17:10:12 · answer #10 · answered by Puppy Zwolle 7 · 0⤊ 0⤋