Do you have the proper investment strategy as the downside risks in the stock market get worse? Trying to predict the stock market is almost impossible so it’s important to watch the economic trend and invest appropriately. With the recent announcement of the bailout for Bear Stearns we see risks growing even higher in the economy and stock market. We started protecting our portfolio last year as the economic numbers started looking bad and this has greatly helped our portfolio. Over the last year the Market Flavor portfolio is up almost 10% as the S&P 500 is down almost 10% over the same time period. With Bear Stearns stumbling we feel they could be the first to drop out of many companies struggling to stay in business. Businesses are cutting jobs, consumer and business spending is down, and consumer confidence is incredibly low. Make sure you have an investment strategy that will stay strong as the stock market continues to slide.

Click here to check out the Market Flavor portfolio and read more about our economic outlook.