Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Investing in the Tulip Crypto Mania 2021 - 19th Jun 21
Here’s Why Historic US Housing Market Boom Can Continue - 19th Jun 21
Cryptos: What the "Bizarre" World of Non-Fungible Tokens May Be Signaling - 19th Jun 21
Hyperinflationary Expectations: Reflections on Cryptocurrency and the Markets - 19th Jun 21
Gold Prices Investors beat Central Banks and Jewelry, as having the most Impact - 18th Jun 21
Has the Dust Settled After Fed Day? Not Just Yet - 18th Jun 21
Gold Asks: Will the Economic Boom Continue? - 18th Jun 21
STABLE COINS PONZI Crypto SCAM WARNING! Iron Titan CRASH to ZERO! Exit USDT While You Can! - 18th Jun 21
FOMC Surprise Takeaways - 18th Jun 21
Youtube Upload Stuck at 0% QUICK FIXES Solutions Tutorial - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations Video - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations and Trend Analysis into Market Correction - 17th Jun 21
Stocks, Gold, Silver Markets Inflation Tipping Point - 17th Jun 21
Letting Yourself Relax with Activities That You Might Not Have Considered - 17th Jun 21
The Federal Reserve and Inflation - 16th Jun 21
Inflation Soars 5%! Will Gold Skyrocket? - 16th Jun 21
Stock Market Sentiment Speaks: Inflation Is For Fools - 16th Jun 21
Four News Events That Could Drive Gold Bullion Demand - 16th Jun 21
5 ways that crypto is changing the face of online casinos - 16th Jun 21
Transitory Inflation Debate - 15th Jun 21
USDX: The Cleanest Shirt Among the Dirty Laundry - 15th Jun 21
Inflation and Stock Market SPX Record Highs. PPI, FOMC Meeting in Focus - 15th Jun 21
Stock Market SPX 4310 Right Around the Corner! - 15th Jun 21
AI Stocks Strength vs Weakness - Why Selling Google or Facebook is a Big Mistake! - 14th Jun 21
The Bitcoin Crime Wave Hits - 14th Jun 21
Gold Time for Consolidation and Lower Volatility - 14th Jun 21
More Banks & Investors Are NOT Believing Fed Propaganda - 14th Jun 21
Market Inflation Bets – Squaring or Not - 14th Jun 21
Is Gold Really an Inflation Hedge? - 14th Jun 21
The FED Holds the Market. How Long Will It Last? - 14th Jun 21
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Do What the Stock Market Bears Do... Not What They Say

Stock-Markets / Stock Markets 2015 Mar 30, 2015 - 05:23 PM GMT

By: Investment_U


Alexander Green writes: Here’s a thought experiment for you.

Imagine you’re a business owner who is attending an investment conference. A smart, articulate and extremely bearish stock market analyst takes the podium and warns of impending economic doom.

He marshals an impressive array of scary facts. He points to past predictions that have come to pass. And he claims the economy and stock market will soon collapse.

Would you go home and sell your business?

I’m guessing your answer is somewhere between “of course not” and “what, do you take me for an idiot?”

But if the economy were really about to collapse - and the value of your business along with it - shouldn’t you sell it now while you can still fetch a good price?

You wouldn’t - and for good reasons.

The first is you may need your business to provide an income. But isn’t that the same reason you shouldn’t sell the stocks in your investment portfolio? After all, they’re not only supplementing your income - with dividends - but also building the capital base you need to meet your retirement goals.

You also surely realize that a bearish analyst is only voicing an opinion, the same as a bullish analyst. In your heart of hearts - if not your frontal lobe itself - you know that no one can accurately and reliably predict the future. (Although pundits generally do a good job of cherry-picking past predictions that have come to pass.)

But here’s another reason you might not sell your business: The bearish commentator isn’t selling his. And that’s a bit odd when you think about it.

I work in the financial publishing industry. When people give up on the stock market - as they did following the financial crisis of 2008-2009 - our business takes a sharp downturn. In a full-blown collapse, a business might fail completely. There wouldn’t be enough revenue to meet expenses.

Yet I notice these passionate bears are never filled with enough conviction to sell their own business at “the top.”

I had a direct confrontation with a perma-bear on this subject a few years ago. We were debating before an audience in New York and the moderator began by asking us to declare whether we were bullish or bearish on the stock market.

My opponent - who had been bearish not just for years but decades - make a quick pronouncement.

“I’m a bear,” he said.

I said, in turn, that my investment approach is “market neutral.” I don’t know whether the market will go up or down, and my recommendations have nothing to do with economic forecasting or market timing. Both are meaningless noise and don’t add value.

My opponent pounced immediately.

“You’re recommending stocks. So just admit it. You’re bullish. Just say you’re bullish.”

“I’m not recommending certain stocks because I think the market will go up,” I said, “but because I think these businesses are undervalued. The market may go down and these stocks could still go higher.”

“You’re playing a game,” he insisted. “If you own stocks you’re bullish, end of story.”

I disagreed and added that since I knew he owned a lot more equity than me, he was actually bullish not bearish.

He took great offense at this remark and insisted he didn’t own any stocks.

“But you have equity,” I said.

This fellow was an industry colleague of mine. He owns a successful publishing business. In fact, his publishing interests were probably larger than my entire stock portfolio. I pointed this out to the audience.

“By your own logic, you’re bullish,” I said. “Why don’t you admit it? If you weren’t, you would sell your business.”

He seemed dumbstruck by this - and more than a little embarrassed. The audience was very possibly viewing him as a hypocrite.

He finally argued that there was a big difference between owning a private business and being a shareholder in a public one.

Except there isn’t.

The issues facing a private publisher are the very same as those facing a public one: labor costs, printing costs, paper costs, mailing costs, advertising costs, advertising demand, economic strength or weakness, overhead, health insurance, information technology, etc.

In short, he wanted the audience to sell their businesses (the stocks they own), but he wasn’t about to sell his.

I’ve found this to be a general rule in our industry. So here’s the takeaway: Don’t do what the great bears say. Do what they do.

Hold on to your equity. It’s the best way to build and protect a fortune.

Good investing,


Copyright © 1999 - 2015 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email:

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in