The Nikkei-225 is another market that has found a support level and is likely to recover after the US market finds support tonight. We know that markets often look for support on prior resistance anf the 12,000 level is strong resistance. It is also a bottom reached earlier in the year.
The question is what stocks to buy. I think the best entries are likely to be Sumitomo Metals since gold is likely to be stronger, nickel is close to its bottom, and copper is doing ok.
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Andrew Sheldon
www.sheldonthinks.com
Investment Strategy
If you are investing for the long term, you still need an investment strategy. Dont be fooled by the rhetoric of fund managers. The reason they advise you to 'buy & hold' is because they dont want to compete with you in sell-offs. Markets and industrial sectors are cyclical, so they demand trading to get the best returns. Fund managers actually cant hope to match the performance of small investors (if you are half good) because they have to manage huge amounts of funds and charge you a fee besides.
MY ADVICE is (i) look at a range of market indices and decide upon what level of correction would give you the justification you need to get in & out of the market. It might be a 5-10% retracement or a break of trend. (ii) Diversify if you dont have an intimate knowledge of the company or management. More than 30% in one company is aggressive.
The Nikkei-225 is another market that has found a support level and is likely to recover after the US market finds support tonight. We know that markets often look for support on prior resistance anf the 12,000 level is strong resistance. It is also a bottom reached earlier in the year.
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