Where did the Bears go ?

In a bear market it is advisable to go for value buys & increase your stake in shares which are already a part of your portfolio (preferably large caps) . Also it is pertinent that you diversify & give a renewed focus on other instruments of investment like gold ,1 ,2 ,3 ,4 ,etc which are considered to have less volatility.

Conventional market wisdom states that when the economy is in doldrums or when the macroeconomic indices look bleak , the market crashes and a bearish candle looms for a considerable time and people try to exit like school kids at the sound of the bell.

Lately however the situation has changed . Ever since stories of people making money of stock market crashes has become a modern fairy tale , people have been flocking to get their hands dirty , stocking up shares like ----- animals prepare for winter / hibernation.

As a result the markets are generally in a huge bubble which can explode any moment. Experts are waiting for the correction to happen for a long time now. As a result the market has become more suitable to traders with high affinity for taking risks rather than institutional investors who consider it as a moderate risk affair for better Returns on Investment.

So how do you face a bear market take high risks and achieve glory or dismay or take the safer route.If you want to play safe There are certain shares that still have some life in them and can turn out to be good value buys along with targeting stocks which deliver good returns via the dividend route as well.

The markets when doing good give out a bullish outlook and when all hell breaks loose is known as as bearish  .

Please find Part 1 , Part 2 & Part 3 of the Financial Series which would add up a simple & fast read on investment and various investment avenues.

"Be fearful when others are greedy, and be greedy when others are fearful." - Warren Buffet