Follow the 'Smart Money'

The so-called "smart money" understands that many investors panic and race for the exits during bear markets. The shrewdest investors position themselves for the next round of profits both on the long side through stock or call option buying -- even though those profits may not appear for some time -- and on the short side through put buying, which can pay off sooner with markets in turmoil.

That's why it's best to stick with a long-term, battle-proven strategy.This approach to bear market investing enables you to stay invested alongside the smart-money crowd by keeping some skin in the game at all times.

Keith Fitz-Gerald is the Investment Director for Money Morning/The Money Map Report. For more information on Keith, read his bio here.