The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question, “Should you continue to invest in a bear market?” I guess the simple answer to this is it depends on what you’re investing in. If you find yourself in the middle of a bear market or it seems like the risk to reward ratio doesn’t really favor a particular security or a particular category or asset class that you’re investing in, then you probably shouldn’t invest a lot of money into it. Now, I say a lot of money because I don’t think it’s a binary thing. I don’t think it’s a yes or no answer. “Do I invest in stocks? Yes or no?” I think it’s a scaled approach or a tilted approach. If you find yourself in the scenario where stocks become overpriced relative to historical norms or cape ratios or P/E ratios, then you might find yourself tilting out of stocks. Not necessarily getting out of them completely, but maybe tilting your portfolio more towards bonds. In the world of options