Investments for the Next Bear Market

“After radically scaling lending during the financial crisis,” the Times tells us, “banks and the lending arms of the automakers have started to issue loans more aggressively.” In other words, the banks (and the automakers’ lending affiliates, like GMAC) have learned absolutely nothing from the worst financial crisis since the 1930s. Or, more precisely, they have learned the most deplorable lesson of all: They can lend recklessly, and the taxpayer will bail them out.

Fortunately, I think we’ve got another six months (perhaps a little longer) before we have to take large-scale defensive measures against the next bear market. However, it’s not too early to begin transitioning your portfolio toward a more conservative posture. On the stock side, I advise you to focus sharply on the small, select group of stocks (and sectors) that still offer solid value in this increasingly overvalued and speculative market. I continue to be excited about the water utilities offering nice dividend yields.


Source: InvestorPlace

Related Articles:

• Dividend Payout vs. Free Cash Flow Payout
• 12 Dividend Stocks For A Rainy Day
• Who is Ben Grossbaum and Why Should We Listen to Him?
• All Investing Involves Risk
• What Will Your Dividend Income Be When You Retire?