1. Advantages of a Bear Market
CLASSES TO GO!
Advantages of a Bear Market
Allen Holdsworth BIVA Board Director

2. Disclaimer
The information in this presentation is for educational purposes only and is not intended to be a recommendation to purchase or sell any of the stocks, mutual funds, or other securities that may be referenced. The securities of companies referenced or featured in the seminar materials are for illustrative purposes only and are not to be considered endorsed or recommended for purchase or sale by BetterInvesting™ National Association of Investors Corporation (“BI”) or the BetterInvesting Volunteer Advisory Board, its volunteer advisory board (“BIVA”). The views expressed are those of the instructors, commentators, guests and participants, as the case may be, and do not necessarily represent those of BetterInvesting™ or BIVA. Investors should conduct their own review and analysis of any company of interest before making an investment decision.
Securities discussed may be held by the instructors in their own personal portfolios or in those of their clients. BI presenters and volunteers are held to a strict code of conduct that precludes benefiting financially from educational presentations or public activities via any BetterInvesting programs, events and/or educational sessions in which they participate. Any violation is strictly prohibited and should be reported to the President of BetterInvesting or the Manager of Volunteer Relations.

3. Advantages of a Bear Market
Yes there is a positive side to a Bear Market!

4. What is a Bear Market?
A decline of 15-20% of the broad market coupled with pessimistic sentiment underlying the stock market.

5. Dow Jones

6. The last Bear market Sept. 30, 2002 Dow 7528 Jan. 5, 2004 Dow 10,568
Oct. 8, Dow

7. Why a Bear Market happens?
Realization of stock fundamentals
Economic downturn
Household savings

8. Bear Market Education Learning experience Where did I go wrong
Review SSG
Is my portfolio balanced correctly

9. What should I do now Review SSG for corrections in judgments
Decide if the stock is down because of the overall market
Search for more information on the company
Decide if the stock is a buying opportunity
Decide whether to sell or buy more

10. What do I do in a Bear Market
Decide whether this is a market correction or the start of something more
Review the stocks you own
Review stocks you wanted to own but were too expensive at time of research
Check your portfolio for balance or the type of stocks you own

11. Things you Don’t want to do in a Bear Market
Do not panic sell
Do not buy stocks just because they are cheap
Do not buy because the media says it is a good time or a cheap price
Do not sell stocks short unless you understand how to do it and what could happen

12. Do’s in a Bear Market Stay the course
Review why you bought the stocks in the first place and decide if anything has changed
Dollar cost average your stocks
Review quality stocks that were over priced
Review your SSGs for buying signals
Remember that when stocks are on sale you get more “bang for your buck”
Sell losers to offset capital gains and buy them back in 31 days if it is still a buy

13. Buy Low and Sell High
Better Investing(NAIC) and Warren Buffet guidelines: buying good quality companies with good fundamentals at a fair or bargain price with more room for growth and price appreciation.

14. Advantages of a Bear Market
There are only 2 times when it matters what price a stock sells for
1. When you buy it
2. When you sell it

15. Review Don’t panic sell
Don’t buy just because prices are low or the media recommends you buy
Learn from your mistakes
Review your SSG’s and your portfolio
Remember that a bear market is a buying opportunity
Don’t forget about your tax situation

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