"It was bound to happen sooner or later. The technology stock bubble burst and bore a bear the size of Texas. After experiencing record highs, the three primary stock indices -- the Dow, Standard and Poors (S&P 500) and the Nasdaq -- have nose-dived up to 70 percent of their value in recent months, leaving invested consumers a bit nervous and tempted to take out what money is left in their portfolios and find another way to build their rosy retirement future.

"If you’re in it for the long term, your first thought should be buying, not selling," says Radford University finance professor Alvin Engelhard. "This is a cycle that we have been through many times. We’re going to come out of it and continue on."

Technically, the market becomes a bear market when it is down at least 20 percent from its high. Named for the way each animal attacks -- a bull gores upward with his horns and a bear strikes downward with his clawed paws -- bull and bear markets have come and gone with a variety of innovations, says Engelhard. "When the television came out, it was revolutionary. When the telephone came out, it was revolutionary. When the Internet came out, it was revolutionary, but in time it’s going to be another staple, just like televisions. This is a learning experience that people need to focus on asset allocation and not concentrate on one area."

Additional reasons for the current bear market include increased surplus due to the increased production resulting from technological advances as well as unrealistic stock prices. "People were inflating the pricing on shares of stock to such a level that it was not sustainable," says Engelhard. "When earnings were not meeting expectations, which were too high to meet anyway, people started selling and it snowballed from there."

So now that you’re face to face with the clawing bear, what’s the best way to minimize loss and maximize your portfolio?"  »»» Click Here For More