Suppose you are concerned about the sustainability of the stock market rally. You believe the fundamentals underlying the economy and the markets are built on sand, and you may have even felt this way for a long time. But you also see a stock market that seems to only rise day after day after day. This results in a dilemma. You do not want to buy into the market in which you are already deeply skeptical the moment it finally peaks and enters a new bear market. The mere thought of it may even be distasteful. Yet you also may not want to absorb the opportunity cost of standing aside if stocks are insistent on adding a few more months or even years to the current bull market. What is the conflicted stock investor to do? The answer? Apply bear repellent where possible to your stock portfolio.
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