Strategies for Profiting in a Bear Market

20 Continuous Years of Profitable Investment Advice 

Since 1982

(We're now up 55.57% using safe investments during this bear market)

On October 25th, 1999, Jim Shepherd's Model issued its first sell signal since 1994, which was the first warning that the great bull market was over. Subscribers were immediately advised to sell all stocks and to prepare to start using alternate investments that would profit from the changes that were coming. These changes have already, and will in the near future, present new opportunities for profit, some of which may be greater than at any time in modern history.

The following is an outline of the main investment strategies that we will use as this bear market progresses or in the event that the Model warns of an imminent crash.

  1. Government Debt Instruments are being used to preserve our core capital that had been accumulated during the great bull market. As the economy continues to weaken, interest rates will fall and these debt instruments will appreciate in value. (Since the original recommendation on October 25th 1999 these instruments have increased in value by approximately 55.57%). In the event of a market collapse the original debt instruments could conceivably be worth 200% more than their original purchase price.
    Risk Rating: Low with correct timing
    Leverage Rating: Low

  2. A bear market Mutual Fund that's value is inverse (opposite) to the performance of the S&P 500 Index. If the S&P Index were to collapse or continue to drift lower losing 50 to 60% of its value, this fund would increase in value by an equal amount providing a possible return of 200% or more.
    Risk Rating: Moderate with correct timing
    Leverage Rating: Low

  3. High Beta Government Debt Instruments (there are several types that may be recommended depending on circumstances at the time) that offer rapid appreciation in the event of a stock market collapse. The value of these instruments could appreciate by as much as 500% in the event of a market collapse.
    Risk Rating: Moderate with correct timing
    Leverage Rating: Moderate

  4. Leveraged Instruments will be used for maximum profit in the
    event that an imminent crash signal is received from the Model. These instruments will explode in value as the market collapses and could provide returns that may exceed the 6700% gains realized during the1987 crash. Leveraged Instruments are not recommended for all investors.
    Risk Rating: Very High, correct timing is crucial
    Leverage Rating: Very high