Bear Market and Corrections

bear market corrections Trade of the Day: CSX Corp. (CSX)
Source: ©
When a market is said to be bearish, analysts are forecasting a downturn of the market or stock often caused by news reports or financial statements. However, as an investor, a bear market does not mean you cannot profit during the down time. By using options and shorting stocks, investors still have the opportunity to make money.
Corrections occur when a new commodity price is established, often after a trade barrier is removed, and due to the price change, the market shifts to a new equilibrium. With the several moving components to a correction, sectors within the market will change accordingly giving investors an interesting time period to play the market.

Recent Articles

Trade of the Day: CSX Corp. (CSX)

I would recommend buying puts into this rally, and the market should ultimately move lower. Here’s one of the highest-probability opportunities I see right now. More 

3 Bear Market Funds to Profit From Pain

Buying bear market funds can be a smart way to add diversity to your portfolio, and hedge against a southbound market. Here are 3 of the best options. More 

3 Lessons for the Next Bear Market … Or ANY Market

This is what the so-called "smart money" keeps in mind whenever we're in the throes of a bear market. More 

5 Reasons You Shouldn’t Worry About a Market Crash

We're going to get a market crash again -- that's inevitable. But don't take the bears' recent warnings to heart. More 

Ask Louis: Are We Headed For Another Downturn?

In a recent meeting with my Family Trust readers, I received an excellent question: Q: How likely is another downturn like we saw in 2007/2008? Here's my view.. More 

Read This Article or You Will Die Penniless!

Marc Faber's call for an 1987-style crash is just the latest apocalyptic prediction to make headlines. What's the motivation behind this type of hyperbole? More 

Great Market Gains, But the Challenge Is to Keep Them

With gains in the market starting to show some wear, here are four strategies for investors to look through for ways to protect wealth and hedge against losses More 

Forget Uncertainty: TRUST Is the Big Issue for Investors

With today's headlines, it isn't surprising that less people are playing the stock market. But the issue isn’t politics or economics – it’s trust. More 

For-Profit Colleges Are Doomed

The real threat to the sector is that college educations may be the next big bubble. More 

3 Ways to Go Short Now

A Goldman Sachs analyst thinks the S&P 500 could drop about 5% or so. Here's how to play the trend. More