Trapped in a Bear Fund

Read an article at cbsmarketwatch today whereby the author mentions getting hit with email regarding bear funds and asking if now was the time to buy. Click here for the article. This is classic investor behavior. After a significant decline for the averages in November, we find investors now believe a bear market is here, and consequently, are losing their grip on discipline and now buying bear funds, although probably too late! Now is not the time to change your long term plan...especially in light of a market that has been hit with bad news after bad news, and is still up 4% for the year on the S&P 500. This tells me the discounting nature is working well, and we are close to bullying forward and attacking the old highs. There will be calm after the storm, but you have to get out in front of it and buy before fact. The subprime mess will end, the credit crisis will subside, and the angst and fear amongst investors will ultimately change to optimism..but by then, it will be too late to buy! Good luck sorting it all out.