My last blog went over the first three reasons that the bear market is here to stay. As promised, here are the final two reasons:

•4.       This recession has reached global levels. The current economy woes aren’t confined to the borders of the United States. In fact, the World Bank believes that global economic growth will slow enough to cause a drop of at least 1.7 percent in the global economy. We haven’t seen a decrease that high since World War II. The World Bank also predicts that developing nations are still growing despite the economy, but developed nations in Europe and the Americas are feeling the pinch. We’re likely in it for the long haul, too. The world economy dropped steadily for three years after the crash of 1929 before making a comeback, and world trade is falling even faster these days. It’s a harsh dose of reality, I know, but don’t worry…we’re getting to the good news!

•5.       The stock market (need I say more?). Now is the time to sell every stock you own. Seriously, get rid of them all and look into alternative investments that are much safer and still offer a nice return. If you have a 401k, though, don’t break it up; just move the funds to a self-directed IRA or money market fund. Steer clear of long-term bonds for now, at least until rates start to surge again. Another good option right now are inverse ETF’s. If you don’t take my advice and decide to keep your money in stocks, count on a decline of at least 37% from last year at this time. Some of you might still have faith in the stock market, and I applaud your tenacity. But know this: the stock market might still have a while before it reaches total collapse, but it is well on its way. You’d be much better off taking your losses now before they get worse.

And now for the silver lining: times may look bleak now, but there is hope for the future. There is still plenty of gold and other physical commodities to be mined , which would not only create jobs for workers but would also help create wealth for investors. We could all use a little more wealth these days, couldn’t we?

Stay tuned for my upcoming blog posts about the top five things you can do to protect yourself and your money in this troubled economy.

Tags: 401k, alternative investments, Ron Wellman, World Bank