Gl0bal markets plunged last night due to concern of the subprime market in the US and a slowdown in takeovers (due to credit tightening). Dow fell 311pts. FTSE 100 fell the most in 4-years. Brazil, Argentina, Turkey, Sweden and Mexico fell more than 3% each. Is this the start of a new downtrend? The answer is yes and no. :)
Yes - in the short term. I am looking at a correction of at least 10% and for at least 2-3 months. This would provide a good platform for the markets to rally into 2008. That is your 'no' answer. The Bull train is not 'dead'.. it just temporarily needs servicing. :)
Fortunately, for the portfolios, I have closed out all position and am now only holding cash. For those who intend to ride this correction out - please try NOT to. Sell it first as there is always a good chance for you to buy back the stocks at a lower level.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment