Here are 10 stocks you need to know about before the bear market starts.

Hello dear friends. My name is Clive

Thompson.

In this video, I want to share with you

something that most investment channels

won't tell you directly.

Not every bare market is a disaster for

every investor.

It's true that some companies just don't

survive bare markets, but there are some

which literally thrive in them. I'll be

naming 10 companies that I think can do

just that if we have a bare market. And

in those 10 companies, there's one

special category of stock loved by gold

and silver enthusiasts

that can move in the opposite direction

of the market as a whole. And I'll

reveal that to you later in the video.

But first, a risk warning.

Nothing in this video is investment

advice. I am not an investment adviser.

I'm not an investment specialist.

When I mention specific stocks, I may or

may not already own them, but I haven't

dealt in any of them in the last 3

months, and I have no intention of

dealing in any of them in the

foreseeable future.

Markets can and do often fall much

further than people expect. You might

not get back the amount you invested.

Please do your own research and consult

a qualified financial adviser before

making any decisions.

That's the financial advice or warning,

should we say, risk warning. But let's

just talk about what I do when I'm

buying or selling. Um, I never do

anything in one go. If I'm thinking of

buying a position or selling a position,

I do onethird of it. So, if I'm going to

buy a certain position, I take one/ird

of what I'm going to invest and invest

that third. And then I wait and see how

I feel. I wait and see what the market

does. I wait and see if I made the right

decision. And it doesn't really matter

if I invest the next 1/3 at a higher or

lower price than previously. And the

last 1/3, same thing applies. What I do

know is that by investing over a period

of time in tanches, I'm not going to be

ending up paying the the biggest fool's

price. I'll be paying an average price

if I'm buying or if I'm selling, I'll be

selling at an average price over a

certain period. That's much more

satisfactory than selling everything and

then seeing the price shoot upwards or

buying something and seeing it collapse

immediately after you buy it.

So do things in stages, whatever you

decide to do.

Now let's talk about bare markets. And

first of all, I do not know whether a

bare market is coming or not. I see some

clouds on the horizon which makes me

think that it's more likely than not. Uh

but it's not overwhelmingly like likely

at this point. Um but there is some

nervousness and a lot of people think

it's coming. So if you believe it's

coming, here's what you can do.

Um first of all, let me define a bare

market. A bare market is a stock market

index which goes down 20% or more from

its recent peak. Anything less than 20%

is called just a correction.

Most bare markets are short. They last

sometimes months, sometimes weeks, and

sometimes just days.

However, there have been some years

where a bare market has lasted years.

For example, the dotcom bubble which

burst in March 2000. Uh the bare market

lasted all the way through to 2003.

Japan's stock market topped out in 1989

and it took another 30 years before it

hit that high again.

Bare markets are more of a feature of

stock markets. So, it's not a question

of if we will have one. It's more a

question of when and that's what we

don't know. But you got to be prepared

for one coming because sooner or later

we will get a bare market. It's

literally a deadert.

Now, let's assume that you believe you

can see the bare market coming. And

there's a lot of people who think that's

true, and they might well be right. I'm

not uh saying that anyone's wrong here.

So, let's assume that the bare market is

really coming. What should you do? Well,

the first thing I would like to say to

you is it would be a wrong decision to

sell everything because some companies

behave much worse than others in the

bare market and the ones you want to be

keeping are the ones which are likely to

go down the least the least volatile

stocks.

But there will be stocks which will fall

significantly and potentially some which

might go out of business if we have a

bare market.

Now Warren Buffett once famously put it.

He said it like this. He said, "You only

find out who's been swimming naked when

the tide goes out."

Well, the stock market's a bit like

that.

You only find out which stocks you

should never have owned after the stocks

have gone down.

Often the ones which go down first and

furthest are the most exciting names

which led the bull run upwards. These

are concept stocks where people are

betting on a future that's not yet

proven to have arrived. Now, it might

arrive or it might not for those stocks

in question, but because they don't have

any current earnings or not enough

current earnings, they can fall the most

heavily. So, the first type of stock to

avoid during a bare market, and what

does that mean? When I say avoid, it

means uh don't buy it. And if you

already own it, uh you could probably

think about selling it to raise some

cash for the ideas I'm going to give you

shortly.

So the first thing uh to get rid of are

the unprofitable growth stocks. These

are the stocks which have been flying to

the sky on a concept on a whim uh on an

idea of a narrative some something

that's going to happen in the future. Um

these kind of stocks could drop 60 70 80

even 90% in a bare market and of course

some might never recover.

The next type of stock that you want to

avoid before a bare market or during a

bare market are the heavily indebted

companies. These are companies which

have high levels of debt. If we go into

a bare market, everybody will be drawing

in their horns including the banks. they

will be more reluctant to lend and

they'll be even more reluctant to lend

to the people or the the firms which

have the biggest levels of debt relative

to their assets or their equity.

That means that those companies might be

faced with paying higher margins, higher

interest rates and face more ownorous

conditions like uh stronger um covenants

or more collateral. None of that is good

for the companies concerned and I

wouldn't own those companies.

Another type of company to avoid are the

speculative junior precious metal

miners.

Now I'm not trashing speculative or

junior precious metal miners in general.

Uh I'm talking about the ones which have

the least cash runway. Now there are

some companies which have got a lot of

gold in the ground. um but they have

also have a lot of cash so they can keep

going for years and years. I'm not

really concerned about those or I'm less

concerned. The ones you really need to

be concerned about are the ones which

have got let's say less than a year's

runway of cash and you can find that out

very simply by going to simply Wall

Street and you'll you'll find it in the

risks if that's the case.

So those sort of companies, the problem

with them is that whilst when times have

been good, they've been able to raise

capital to keep paying the bills, but

when we're in a bare market, people re

in the horns and are not so willing to

invest. So when they go to raise

capital, they'll find it much harder to

get any. And that does mean if they

don't get it, they can't pay the bills,