With this Bear-Market Insurance, You Can Keep Riding the Bull

With this Bear-Market Insurance, You Can Keep Riding the Bull
By Martin Hutchinson, Contributing Editor, Money Morning

During the last few weeks, the U.S. stock market has recovered from its mid-February swoon and clawed its way to a new high for the year - returning share prices to levels not seen since late 2008.
At this point, based on consideration of its change in value since the money supply inflation began in early 1995, stocks appear to be substantially overvalued, perhaps by as much as 40% to 50%.
However, if our experiences of the late 1990s taught us anything, it's that the stock market can remain overvalued for years - meaning investors who opt out of the market completely risk getting left behind.
Still, given the soaring run-up we've seen since the stock market's March 9, 2009 nadir, I thought this would be an excellent time to review the ways nervous investors can protect themselves - even as they remain invested. That's just good, sound risk management.
And there is a way to achieve both goals - with a type of bear-market "insurance' that's fairly easy to use.
To find out about "bear-market insurance," please read on...