It is always interesting to see what stocks and sectors performed the best in past bear markets. According to the book, Understanding Wall Street, by Jeffrey B. Little; "Buying Contra-market stocks" will help your portfolio because they move in the opposite direction during bear markets. Oh, do they really? According to the book, Understanding Wall Street; "Each bear market is different. In years past the groups that outperformed were"; 1946- Oil & Gas 1957- Pharmaceuticals, food and Tobacco 1962- Gold 1969-1970- Coal and Auto Parts 1973-1974- Gold, Sugar, Steel, and Fertilizer 2000- Gold Let's flash forward to today. The best performing sectors over the past year were the same stocks and sectors that performed well during past bear markets. Materials- Commodities, Raw Materials, Coal, etc Energy- Oil & Gas Consumer Staples- Food, Household Products Utilities- Electric, and Gas So, what is the difference? Obviously, the stock market is rallying, and bear market stocks are blasting higher while the Dow continues to set new all time highs. So, why are we interested in what performed well during past bear markets? In my opinion to accurately forecast inflation, commodity prices as leading indicator seems to be the only "real" accurate measure. It’s obvious that politics have played a major role in the dummying down of the inflation data (CPI & PPI) we receive today. Folks, I can't make it any simpler than this. You are being lied to! Here is a small list of other the lies, distortions, and just plain BS we have heard concerning; 1) The economy- low inflation-BS 2) The war in Iraq- to fight terrorism-BS 3) Border issues, and the “Security and Prosperity Partnership” (SPP) agreement, which essentially merges the United States, Canada and Mexico into one entity.- Lies, Distortions, & BS 4) NAFTA, CAFTA- Lies, Distortions, & BS 5) Censorship by the politically correct -"thought police"- concerning what words or thoughts an individual can or cannot use. As a final note, I would regard political correctness as a form of communism since it only seeks to defend only select minority groups or religions. Just this morning, President Bush said he was unhappy with a congressional committee's declaration of Armenian genocide in 1915. Bush did this to appease the ruthless Muslim Turks who in 1915 killed my grandfather’s brothers, sisters, and mother during the Armenian Genocide. Bush would have never made such a claim if a congressional committee made the same declaration of the Holocaust. If Bush would have made a claim denying the holocaust, the media would have relentlessly criticized him. I really can't blame Bush though. I need to keep reminding myself that he is not really in charge, and someone else is always telling him what to do and what to say. I need to remind myself that behind every powerful politician, there is a puppet master.