The Good News Bear Market.

When I hear the phrase “Bear Market”, I shudder. I know that there’s a great chance that my portfolio will lose value. And that’s bad news in my book.

But, not all the news in a Bear Market has to be bad. In fact, you can find good news in a Bear Market – it just depends on how intelligent an investor you are.

Today, I read a great article on WSJ.com that shed some light on what you can do in a Bear Market. According to the author, Jason Zweig, we’ve been in a Bear Market for years. And he’s looking forward to us staying in one for a while. Why? Well, when you check out the article, you’ll find out that he sees great opportunity in Bear Markets.

As I was reading it, I found out that one the greatest investors of all time, Warren Buffett, seems to love Bear Markets. This year, during the Berkshire Hathaway annual meeting, Buffett stated that as an intelligent investor: “If a stock [I own] goes down 50%, I’d look forward to it. In fact, I would offer you a significant sum of money if you could give me the opportunity for all of my stocks to go down 50% over the next month.”

Now, why in the world would Buffett want his stocks to drop so far? Because, he knows that if prices of good companies drop, he can buy more of those cheaper shares. And then he can profit greatly when those shares bounce back and rise.

That sounds like good news to me.

So, to get a clearer view of how you can profit in this Bear Market, check out the article. And let us know what you think.