Saturday, October 4, 2008

Catch the Bull & Avoid the Bear.

How could we miss all the signals that were telling us the bear market(credit crunch) is coming?

I have already been hit by the worst financial turmoil in my first year of investment career. But, as long as I have a full time job providing me cash flow to invest, this bear market driven by credit crunch is probably the best lesson. It also prepares me for the future bear markets to come. Oh I am learning from the best-worst bear market.

We better learn from the our past and benefit it for our future. Here is a graph that pretty much telling us all the signs of pre-bear market and pre-bull market. Catch the bull and avoid the bear: