Today (Tuesday) is the day to buy. The Dow Jones might have closed down 369 points at 9952 pts, below the 10,000 pt psychological support, but that is still a support based on previous lines of support. More importantly, the market plummeted to 9525 points during the session, so it actually recovered 432 points - that's a significant recovery. Clearly sellers are shocked by what is occurring and jumping ship, but the smart investors should have been buying overnight, or today in Australia. This is the level we have been waiting for.
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.
Today (Tuesday) is the day to buy. The Dow Jones might have closed down 369 points at 9952 pts, below the 10,000 pt psychological support, but that is still a support based on previous lines of support. More importantly, the market plummeted to 9525 points during the session, so it actually recovered 432 points - that's a significant recovery. Clearly sellers are shocked by what is occurring and jumping ship, but the smart investors should have been buying overnight, or today in Australia. This is the level we have been waiting for.
Posts
No comments:
Post a Comment