The Nikkei 225 has broken support and looks like its heading to its historic support of 7660 points. The Nikkei closed at 8360 points over the weekend, implying that this market still has 700 points to fall before it reaches that level of support. The lack of news by the Japanese central bank might be reason enough for the trepidation, if not the falls on Wall Street. The G7 bank support does not strike me as great news because that was always coming.
There are a lot of commentators talking up the market, but it just keeps breaking important supports. It seems to be going back to long term support levels. Unfortunately I am somewhat limited with this chart because I don't have enough index history on this computer. Sorry my LT data is in Japan. :) For that reason I would look to other markets for guidance.
-----------------------------------------------
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.
No comments:
Post a Comment