Beating the Bear Market: Do-It-Yourself

Earlier today in my quest to find ways of beating the bear market, we looked at going contrarian. This post is related to that concept, with Paul Farrell at MarketWatch recommending a do-it-yourself approach to investing:

Remember Buddha’s advice: “Believe nothing, no matter where you read it or who has said it, not even if I have said it, unless it agrees with your own reason and your own common sense.” You are the only “expert” you can trust: All brokers and money managers, newspapers, magazines, online and newsletter pundits, all television anchors, and every other special-interest guru is “selling” you something. Don’t buy “it.”

You can do your own research into companies. It is more time-consuming, but in the long run it can save you money. Managed mutual funds, with their load fees and administrative costs are prime examples. So are brokerages that manage your stock investments. I find that online discount brokers can be great money-savers. Flat rates and more save you money up front, and research is finding, more and more, that the difference in gains you make on a managed account disappear into fees and commissions.