Surviving 2009 and Thriving Beyond
(2009-02-26 04:44:56)
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1. Take advantage of any bear market rallies to sell stocks and purchase bear market (short) ETFs.
2. Be patient and wait until the economic depression is fully priced into stocks, bringing P/E ratios down to around 10 times from the current 15 times.
3. Build additional liquidity every chance you get.
4. There will be a once-in-a century, bargain-basement buying opportunity when the stock market overextends on the downside. That will be in the neighborhood of 550 for the S&P 500, meaning the S&P will be down 62% from its October 2007 peak of 1,450.