The bear market is here — how to protect yourself - video Dailymotion

Navigating a bear market isn’t easy — here’s how to protect your finances.

Transcript

00:00We actually are in a bear market depending on your definition.

00:04We use a definition of using two moving averages, the 50 and the 200.

00:08And when the 50-day moving average crosses below the 200-day moving average

00:13and the actual price is trading below both of those moving averages,

00:18that is the classic bear face.

00:19Charles Dow talked about that back in the 1800s.

00:23So as far as we can see, we're there in the SPY, in the Qs, in the Russells,

00:27and many of the sectors.

00:30So the good news about bear markets is we know they eventually end

00:34because optimism, you know, we're hopeful people, right?

00:38So optimism starts to come back in.

00:40But we haven't seen that yet.

00:42So I would say don't be too tricked by this to think that the bear market is over

00:47until we see actual signs that the indices and sectors can get back

00:52over that 50-day moving average.

00:54And then we can start talking about bear over recuperation here.

00:59And how to navigate it would be, first of all,

01:01it's really great to look at things that are going counter.

01:05So while we have a lot of things in a bear market,

01:07there are certain things that have been outperforming.

01:09We just talked about commodities earlier.

01:11That would be one, particularly gold and silver.

01:14Copper is trying to get in the game now.

01:17A couple of other commodities are looking good.

01:19The grains and the other would be looking at something like emerging markets.

01:24Because if you look at the China market versus the spy market,

01:26that's been basing and breaking out as opposed to the spy,

01:30which has been basically coming down,

01:33having bear market type rallies and then going back down.

01:37So again, if you think there's some kind of a low in place,

01:40if people are looking at April 9th as the low,

01:43that would be 4,800.

01:44One thing you know is if we break down under there,

01:47we're going much lower, but we could also chop for a long, long time

01:52before we see something more substantial in the way of a sustained rally.