Stockmarket crashed ;Which way out?

Question

TSX lost 4% of its value; Economy is moving how to recover??

Answer 1

Well, the scene last week was just a minor correction, we are due for a major correction in the 2nd part of this year...

there are 2 main forms of share investment, short term speculation and long term buy-hold

in long term buy hold, you shouldnt be concerned about market corrections as these are inevitable and would help maintain the market at a healthy, as long as you are not affected by short term fluctuations, you will see long term returns

for speculation and short term strategies, basically market moves in 3 ways, up, down and sideways, the strategy for an upward trending market is to go long, i.e. to buy low and sell high. for a sideways market, options will help structure positions to make money, lastly, in a down market, you have to have the ability to go short, i.e. sell high cover low. by shorting the market you will not be concerned if it falls as that is the direction the market has to move for you to earn. if you do not have the ability to short the market, you will lose out on profits 1/3 of the time and also be in ur current vexed position if the market were to fall.

if u require more info just drop me an email.

Answer 2

Technically speaking, we've only experienced the first wave of correction. When major correction takes place, it is not uncommon to see the 2nd and 3rd wave following through very drastically. If you aren't prepared to short the market, it is wiser to get out of the market completely asap (take the loss if necessary before a small loss becomes too big). You can always re-enter the market when the bullish momentum builds up again. Right now, I personally think that there is a much higher chance of breaking down than up. It has been up for so long that this first wave of correction should have more strength to exert its presence. The investors' sentiments have appearently changed - fear overules greed now. You probably don't want to be the last one leaving the party.

Answer 3

Relax! Market just going thru normal correction process that has happened many times. If your investment has only lost 4% there is no need to panic and look for exit doors. Everything so far moving as expected. Too many positives to ignore. It will recover. After 20 years of investing, only look for exit doors at 10% DOWN. Keep the faith!

Answer 4

I take it you are talking about the correction of last week which started in Japan. Most analysts are saying it was just a small correction. I believe the big correction is ahead of us. The markets are running on inflated prices . It has been too high for too long. The bubble will burst.It is the same as the American economy, too good too long. The time for the american dollar to be devaluated is way over due. The brightest fire burns the shortest.