Bear Market Investing Basics.

I read a good, short article yesterday about how to profit during a Bear Market, which we’re in right now.

The piece, by Keith Fitz-Gerald on the terrific MoneyMorning.com site, lists the 5 Keys to Bear Market profits.

According to Keith, these secrets are:
1. Don’t buy a stock if its fundamentals don’t match it’s price
2. Don’t overpay for a stock, even if you think it’s a “bargain”
3. Look for companies that are keeping their prices stable or even increasing them, and still keeping their customers
4. Look for companies that have new research coverage by analysts
5. Look for companies that pay good dividends

These seem to make total sense to me. And they seem to be the same basic parameters that we should always be looking for - no matter if we’re in a bear or bull market. But honestly, a lot of us don’t follow these basics. And we then pay the price for it.

Check out Keith’s article. Then look at your portfolio to see if you’re following these keys. You just might see something that you want to change in order to better position yourself for profits in this market.