Ask Colin

Do you continue to hold stocks in a bear market and would you include any growth stocks?

For me to tell you what I would do is not helpful, because all of us has a different trading/investing plan. I think what you are really asking is what should you do, not what should I do. I cannot answer for you either, because I do not give specific advice to anyone and I do not know your plan anyway.

However, what I can tell you is that value investing pays off best in the early parts of a bull market and growth investing has its day later in the bull market. In a bear market, the most over valued stocks will fall furthest and so will the cyclical stocks. So, because market risk is high, I advocate that everyone should be taking a defensive posture. To me that means undervalued non-cyclical stocks.

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