2007-03-14 05:37:09 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
you can make money in any type of market. in a market that you deem to be bearish, you can always take the inverse route. there are a lot of ETF's available to you that will allow you to bet against a sector or index. QID for example is an inverse of the NASDAQ top 100. Playing these funds is a lot less risky than shorting a stock outright because when you short, you are taking an unlimited amount of risk. Theoretically, there is no limit to how high the price of a stock can get.
i think if volatitlity increases, there will be a flight to safety. risk adverse people will move into steady large caps with good dividends as well as fixed income. why invest in smallcaps for higher risk/almost same return as large caps?
2007-03-15 08:11:54 · answer #1 · answered by jnizzle 2 · 0⤊ 0⤋
We are currently in a bull market. This is a correction that may last another 2-6 months. If you think this is a bear market, you aren't going to profit. The last bear market whe had ended in October 2002, and we probably won't experience another one for another 5+ years.
2007-03-15 01:27:55 · answer #2 · answered by bigfella422 2 · 0⤊ 0⤋
Are you really sure that it is a bear market now? I still do not think so....
Shorting Stocks is a very dangerous strategy. please do not do it if you do not have the knowledge or expertise.
Anyway My suggestion is to buy a put options on the falling stocks.
2007-03-14 13:47:54 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You can short stocks, money and commodities. You can also go cash and buy low. When the economy gets back on track the iteam's value will rise.
2007-03-14 13:02:59 · answer #4 · answered by gregory_dittman 7 · 0⤊ 0⤋
Have you ever though about trading for a living?? If so check out our company www.rematatrading.com
2007-03-14 14:18:59 · answer #5 · answered by phantomtrader2 2 · 0⤊ 1⤋