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CLASSES TO GO!

• Advantages of a Bear Market

Allen Holdsworth BIVA Board Director
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Disclaimer

• The information in this presentation is for
  educational purposes only and is not intended to
  be a recommendation to purchase or sell any of
  the stocks, mutual funds, or other securities
  that may be referenced. The securities of
  companies referenced or featured in the seminar
  materials are for illustrative purposes only and
  are not to be considered endorsed or recommended
  for purchase or sale by BetterInvesting National
  Association of Investors Corporation (BI) or
  the BetterInvesting Volunteer Advisory Board, its
  volunteer advisory board (BIVA). The views
  expressed are those of the instructors,
  commentators, guests and participants, as the
  case may be, and do not necessarily represent
  those of BetterInvesting or BIVA. Investors
  should conduct their own review and analysis of
  any company of interest before making an
  investment decision.
• Securities discussed may be held by the
  instructors in their own personal portfolios or
  in those of their clients. BI presenters and
  volunteers are held to a strict code of conduct
  that precludes benefiting financially from
  educational presentations or public activities
  via any BetterInvesting programs, events and/or
  educational sessions in which they participate.
  Any violation is strictly prohibited and should
  be reported to the President of BetterInvesting
  or the Manager of Volunteer Relations.

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Advantages of a BearMarket

• Yes there is a positive side to a Bear Market!

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What is a Bear Market?

• A decline of 15-20 of the broad market coupled
  with pessimistic sentiment underlying the stock
  market.

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Dow Jones
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The last Bear market

• Sept. 30, 2002 Dow 7528
• Jan. 5, 2004 Dow 10,568
• Oct. 8, 2007 Dow 14093

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Why a Bear Market happens?

• Realization of stock fundamentals
• Economic downturn
• Household savings

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Bear Market Education

• Learning experience
• Where did I go wrong
• Review SSG
• Is my portfolio balanced correctly

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What should I do now

• Review SSG for corrections in judgments
• Decide if the stock is down because of the
  overall market
• Search for more information on the company
• Decide if the stock is a buying opportunity
• Decide whether to sell or buy more

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What do I do in a Bear Market

• Decide whether this is a market correction or the
  start of something more
• Review the stocks you own
• Review stocks you wanted to own but were too
  expensive at time of research
• Check your portfolio for balance or the type of
  stocks you own

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Things you Dont want to do in a Bear Market

• Do not panic sell
• Do not buy stocks just because they are cheap
• Do not buy because the media says it is a good
  time or a cheap price
• Do not sell stocks short unless you understand
  how to do it and what could happen

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Dos in a Bear Market

• Stay the course
• Review why you bought the stocks in the first
  place and decide if anything has changed
• Dollar cost average your stocks
• Review quality stocks that were over priced
• Review your SSGs for buying signals
• Remember that when stocks are on sale you get
  more bang for your buck
• Sell losers to offset capital gains and buy them
  back in 31 days if it is still a buy

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Buy Low and Sell High

• Better Investing(NAIC) and Warren Buffet
  guidelines buying good quality companies with
  good fundamentals at a fair or bargain price with
  more room for growth and price appreciation.

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Advantages of a Bear Market

• There are only 2 times when it matters what price
  a stock sells for
• 1. When you buy it
• 2. When you sell it

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Review

• Dont panic sell
• Dont buy just because prices are low or the
  media recommends you buy
• Learn from your mistakes
• Review your SSGs and your portfolio
• Remember that a bear market is a buying
  opportunity
• Dont forget about your tax situation

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Make A Difference In Someones Life

• If you have benefited from
• BETTERINVESTING,
• Please pick up some
• BETTERINVESTING
• materials
• and introduce others to this opportunity.