One of the keys that Paul Farrell mentions in his MarketWatch article on beating the bear market is the importance of allocations:
Once you determine exactly what asset allocations fit your particular needs, stick to them. Remember, the mix of specific indexes is crucial, not the specific funds. Rebalance when necessary to bring your portfolio in line, ignoring brokers’ relentless buy/sell pressure.
Everyone has different needs, and if you are planning on putting together a long-term portfolio that can whether the current downturn, it is important to consider your own. And look at how your portfolio is allocated. Instead of looking at …read more

We’re heading into a recession in the U.S. economy, and a bear market is coming in terms of stock investing. I’ve been posting advice from Paul Farrell’s article on MarketWatch, “Ten resolutions that will help you survive the coming bear market.” All sorts of words of wisdom about practical investing in these perilous economic times. Today’s chosen extract is this:
Nobody can time the market. Remember, about 75% of all managers fail to beat their benchmarks. They want you to play the market because they get rich from your trading fees and commissions. If you have an itch to gamble, go …read more

There are investments to be made, even in a bear market. As we continue to look at the Paul Farrell MarketWatch article about beating the bear market, we find some good investment advice:
You don’t need a broker nor funds run by active managers with high expense ratios. Protect your nest egg by investing in low-cost, no-load index funds. Research proves low expenses are the only reliable predictor of future performance.
This is good investment advice even in a bull market. Administrative fees and loads can eat into your earnings on index funds. This also applies to other types of investments. If …read more

I continue to faithfully glean the nuggets out of Paul Farrell’s MarketWatch article on beating the bear market. And remember: just because the stock market is up right now doesn’t mean the economy will let it stay that way. It’s always better to be prepared. The wisdom I’ve chosen for today deals with early retirement:
Yes, the rules of the retirement game have changed. Nobody “retires” in the traditional sense. Nothing’s safe. Not pensions, jobs, Social Security. You better plan on retiring earlier than expected; you may be retired prematurely, against your will. Increase your savings. Start that back-up second-career now …read more

Contrary to popular belief, most millionaires, and those who enjoy a comfy retirement, have to do some measure of work. I mean, before most people like Bill Gates and Sam Walton hit it big, they had to pay their dues and put in some good, hard work. (I think Warren Buffett has it right, though — don’t leave even most of it to the kids.)
This concept is even more true during a bear market. Paul Farrell at MarketWatch offers some great insights into beating the coming (well, I think it’s basically here already) bear market. And in the coming days …read more

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 …read more

Yesterday I mentioned that I will be devoting some time to an article written by Paul Farrell for MarketWatch. This article gives 10 things you can do to beat the bear market that has already begun. Today’s first advice is this: Go Contrarian.
Don’t trust Wall Street to make your investing decisions
Farrell points out that Wall Street is very biased:
The vast majority of business, economic and stock-market forecasters are not looking out for your interests. They’re biased, favoring their employers on Wall Street, Corporate America and Washington. The past few years they made huge bucks hyping the credit/subprime bubble. Witness their …read more