Increasing equity allocation in severe bear markets

Responding to an earlier post , a few readers have wondered if I have considered increasing the equity component of the portfolio in a severe bear market, a tactic gingerly suggested by William Bernstein in The Four Pillars of Investing ( read review ): Ideally, when prices fall dramatically, you should go even further and actually increase your percentage equity allocation, which would require buying yet more stocks. This requires nerves of steel and runs the risk that you may exhaust you

Some great bear market investing tips in this post.

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