On Monday when the market crashed, I was away from my computer. I missed the entire event. In fact, I was having lunch with Market Man who is also bearish on the market. While most investors had their ass handed to them, my portfolio set a single day record. Of course, a single day is just noise, which is why I gave back half my gains from Monday the very next day.
The direction for the stock market indexes is down, but the path is not straight.
From FLICKR user pingnews.com “The War of Wealth” by Strobridge & Co. Lith., ca. 1895 (LOC)
Bear markets are brutal. Buy and hold strategies will seriously damage you in a secular bear market. If you do not feel comfortable shorting the market, whether directly or in a managed fund, the best place to be is in a fixed income fund. Return of capital is more important now than return on capital. Your goal should be to have cash at the bottom.