3 Ways to Stay Safe in this Market

Is this a “normal” market?

GM is bankrupt. Unemployment is rising every month. Oil prices are up 90% in six months. And the market goes up.

Does it make any sense at all?

Well, it should.

A few weeks ago we looked at the three stages of a bear market rally. And right now, it looks like we are squarely in the middle of the third and final stage. As we noted a few weeks ago when we analyzed the greatest bear market rally ever:

Stage 3 [of a bear market rally] is when we see a lot more money come in. This is when the big money – mutual funds, institutional investors, etc. – start buying into the market and it appears all is well.

Right now, although nothing is too well fundamentally (housing, unemployment, etc.), a lot of things appear to be well. Here are three tried and true ways to go along for any run-up to go and stay safe at the same time.