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Bill Gunderson
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Bill Gunderson @billgunderson is the CEO and Chief Market Strategist of Gunderson Capital Managment in San Diego, CA. He is also a professional money manager, former research analyst, author of Best Stocks Now, and developer of the Best Stocks Now smartphone app. He offers four free weeks to his... More
My company:
Gunderson Capital Management
My book:
Best Stocks Now! Summer 2011 edition
  • Gunderson: End of the Bull Market? What to do now. 0 comments
    Aug 1, 2011 10:33 AM

    The End of the Bull Market?
    What to Do Now.
    by Bill Gunderson
    http://www.PWstreet.com


     The current BULL MARKET began on March 6, 2009 when the 
    S & P 500 finally bottomed out at 666. Gunderson Capital Mgt. has been fully invested ever since and client accounts and assets under management have swelled.

     The BULL MARKET is now 30 months old and currently faces its stiffest test yet. Our national debt has soared from $9 trillion to the current limit of $13 trillion over the last three years and Congress is now debating on what to do next. 

    There are those that want to continue status quo, those that want to make phantom cuts, and those that want to really overhaul the system. The market have been extremely volatile during this period of time.

     Almost getting lost in the Washington shuffle is the fact that GDP was reported at an anemic 1.3% last Thursday, and the jobs picture is not getting any better.

     No wonder I can make the statement that the current 30 month old BULL MARKET is now facing its stiffest test. I want you to know that I have a strategic and methodical plan in place just in case the Bull is dead. You or your current money manager should have one too.

    Here is my plan:

    1. Continue to evaluate each and every holding on a daily basis to make sure that they continue to flourish. In past weeks, leadership stocks and etf's like Apple, Green Mountain Coffee, Golar Ltd, Fossil, Alexion, Baidu, Borg Warner, Cerner, Cabot Oil, Deckers, First Cash, Fomento Econ, the Swiss Franc, Gold, M W I Veterinary, Avalon Bay, Priceline, Quality Systerms, Seaboard, Sodastream, TJ Maxx, Ultrapar, Telecom de Sao Paulo, Zoll Medical, and other continue to hit new highs, but they will be vulnerable if the BULL were to end.

     

    2. Keep in mind that many stocks like Autozone, First Cash, Ross Stores, Dollar Tree, Ezcash, etc., etc., were actually UP when the market was down 38.8% back in 2008. Not every stock should be sold!
     
    3. Trim stocks that fall or begin to fall from leadership positions. If the Bull is coming to an end, you do not want to be holding stocks that are vulnerable. Raising some cash would be a more prudent move.
     
    4. Start introducing hedges to portfolios. Almost every asset class has an inversely correlated ETF. Average investors can now establish short positions in the U.S. Dollar, Interest Rates, Financial Stocks, Technology Stocks, Emerging Markets, etc., etc.  

    5. Just as a lot of money has been made on the way up, a lot of money can be made on the way down, if a new BEAR  does occur.

      

    I have established levels that if the market were ti violate, the above actions will be taken.

    Do you have a plan? Does your current broker have a plan? If not, call me at (760)736-8258 or send me an email at bill@pwstreet.com ASAP.

    You can also follow me on Twitter as I send out many tweets throughout the day.

     

    Best Regards,

    Bill Gunderson

    Gunderson Capital Mgt. Inc.

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