Bracing for a Bear Market

"The beatings will continue until morale improves." ~ unknown

The market decline has been relentless for the first two weeks for 2016.  It will likely continue this week and maybe even for the entire month.   In the worst case, the low oil prices will lead to a financial crisis similar to 2008, despite all the new regulations implemented by the Federal government.

For now, I expect sellers to be in charge of the market, driving the indices down another 5 to 10%.  During that time, I will continue to invest in increments, buying small lots of a commission free total market ETF and small positions in dividend paying stocks.  I am still following my rule of only buying one or two positions a day since stock prices will likely be lower in the future.  In addition, I won't make any purchases on days the market rallies.

I will continue to buy incrementally until the market indices reach a 20% decline (S&P - 1707,78, Dow - 14681, Nasdaq - 4185).   At that point, I will decide if stocks are just on "sale" or if "clearance" prices are likely to come. Depending on my answer, I will either continue to buy, or move to the sidelines.

For more on New Beginnings, check back Sundays for a new segment.

This is not financial advice. Please consult a professional advisor.

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