The following opinions have been curated from the ClosingBell community. ClosingBell has been nominated for the 2016 Benzinga Fintech Awards.
Are we in a bear market? Is there still some life left in the bull market? The answer is unclear, and experts aremixed. What is certain, though, is that there are many ways to play a potential down move.
ClosingBell's community of thousands of stock-pickers recently chatted about 11 different ways to play a bear market. Here's what they were asked, and what they said.
QUESTION: The Dow just had the worst 1-week start to a year in history (down 6.2 percent) according to S&P Dow Jones, pushing some pundits to proclaim the start of a bear market. What are your best stock picks for a bear market and why?
"I think we are in for a difficult year due to conversations I've had with people close to the debt market. Liquidity isn't a problem, but deals aren't getting done. My experience is that junk bonds and commercial lending having issues are the canary in the coal mine. Add China issues and politically-driven rate hikes and the market is in trouble in 2016."
"Buy out-of-the-money put contracts on Wal-Mart Stores, Inc. (NYSE: WMT), Ford Motor Company (NYSE: F), Gap Inc (NYSE: GPS), Celgene Corporation (NASDAQ: CELG), iShares MSCI Brazil Index (ETF) (NYSE: EWZ), iShares MSCI Emerging Markets Indx (ETF)(NYSE: EEM), IMW and Yelp Inc (NYSE: YELP). If we go into recession, you will win big, guaranteed. Use prudent risk management (less than 1 percent assets per position), use technical stops and roll winning contracts forward. Keep an eye on ALK, DAL and JBLU. The energy complex is so weak — airlines will reap the benefit. Also learn how to trade in the futures market. It’s probably a bad ...
/www.benzinga.com/analyst-ratings/analyst-color/16/01/6144087/11-different-ways-to-play-the-bear-market-from-11-trader alt=11 Different Ways To Play The Bear Market (From 11 Traders)>Full story available on Benzinga.com
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