HARRY D. SCHULTZ is renowned for his ability to reap successful returns during bear markets and recessions. He writes the International Harry Schultz Newsletter, for which he has received numerous awards of excellence. For nearly 40 years, Harry Schultz has successfully called most of the major market turns and continues to advise investors through his newsletter in over 90 countries around the world.

1 Introduction 1

Part I The Bear Background 7

2 Overview 9

3 History of Bear Markets 17

Part II Economic Setting for Bear Markets 29

4 Guideposts for Bear Markets 31

5 Globalization, Terrorism, and Foreign Investment 39

Part III Structure of Bear Markets 43

6 Secondary Reactions 45

7 Bear Market Legs 52

Part IV Tools for Measuring Bear Markets 57

8 Tools to Help You Recognize and Survive a Bear Market 59

9 Tools that ''Change Shape'' in Bear Markets 74

10 Cycles Study: A Useful Market Tool? 78

11 Chart Reading and Interpretation 83

Part V Money-making Tactics 89

12 Preservation of Capital during a Bear Market 91

13 Short Selling 101 98

14 Strategies for Making Money Even If You Guess Wrong 108

15 Rules for Being a Flexible Investor 115

16 Defensive Investments that Allow You to Sleep Nights 119

Part VI The Emotional Aspect 127

17 Human Psychology in the Marketplace 129

18 Contrary Opinion 137

Part VII Predictions and Conclusions 143

19 The Past is Prologue 145

20 Epilogue 155

Glossary of Terms and Tactics for Market Mastery 159

Resources/Recommended books, newsletters, data suppliers, chart services 168

Index 175

"...a truly brilliant compact tome which I expect will be an acclaimed classic even in 50 years time..." (www.erivativesreview.com, 18 November 2002)