Oh Creative is now a red chip huh. Guess it slowly changed colour from when it was a $60 stock to now.

Amazingly there could be poeple out there who think it could climb back up to a $20 stock

Some sectors get savaged, while others merely only pullback. The key is knowing the difference.

Of course, it's those pullbacks that give investors the opportunity to take a nibble of their own. But to do so you have actually got to get in the cage with that nasty old bear.

That takes courage.

Savvy investors have it in spades. They head to the sounds of the guns, not away from them.

But today's markets present a different challenge of all their own - the guns are louder than they have been in 25 years. And with a greater recession looming, that bear may just be only warming up.

So you just can't jump into the cage and buy what you think is cheap. That's the "value trap" that has crushed the likes of Bill Miller-the famed Legg Mason guru.

 So instead of concentrating on what looks "cheap" to guys like Miller, investors ought to be concentrating on the things that make stocks attractive in the first place.

That's growth, earnings, and more importantly these days - pricing power. That is how you get into the cage with the bear these days and live to tell about it.

That is what makes an "old economy" sector like steel industry investments attractive these days. They are one of the babies in the bath water.

Beating the Bear with Steel Industry Investments

Only dinged by the bear, steel is an industry that is still chugging along since demand remains high. And while auto sales and home construction are certainly down, that has only been something of a speed bump for steel. Energy, infrastructure, and agricultural uses for the product have more than filled the gap.

Then there is that old familiar story of world wide growth. It's gobbling up steel as fast as they can make it, scrap it or steal it. That is cutting into products that otherwise would be imported.

And it's not slowing down either, not by a long shot.

Demand from Brazil, Russia, India and China and other emerging economies will rise 6.7% this year to almost 1.3bn metric tonnes, according to the latest forecast by the International Iron and Steel Institute.

Moreover, growth in 2009 is set to rise by about 6.3%, according to the institute, which represents 180 steel makers across the world.

Increased pricing power is a result-even in the face of a downturn.

That not only has thieves stealing empty kegs and man hole covers but steel companies raising their prices and growing their margins.

In fact, steel prices have soared by almost 50 percent this year and could rise even higher as the cost of raw materials keeps goes higher and global demand increases. As a result, Goldman Sachs recently upped its steel price forecasts to $936 a ton this year. That same steel averaged $530 a ton at the end of last year

Moreover, the Goldman forecast puts the cost of steel for 2009 at $1000 a ton. Costs meanwhile are growing but going up less boosting margins.

On the flip side, a weaker dollar has also helped U.S. companies by raising the cost of imports. That has put American workers in a better competitive balance versus the rest of the world and protected domestic steel against "cheap imports".