The market is trying to stabilize at lower levels but every rise is met with fresh selling. Definitely fear is ruling our markets!
So should one act brave and buy this fear? Ask the brave guys who bought a JP associates while it was falling down!
I’d buy the fear but only in small quantity. There is a very high risk of this market testing lower levels. Even if you don’t buy now, you will only miss “a few opportunities” but you might end up saving a lot of money.
Just as no price is “high enough” for stock prices, similarly no price is “low enough”.
The world is going through turbulent times and the US consumer which formed the central engine of US and global growth is under a lot of stress. Major banks like Citi are still facing possibility of huge writedowns (till date $180 billion+ has been written off in the banking system) and there are big question marks on its survival.
The world doesn’t end in a recession but stock prices do stumble a lot in recessionary times.
You might have to reconsider your “equity exposure” in the short term. I might be wrong but the price trends tell me that we are still headed down.
So this might be a time to change your strategy -like resort more to short term trading and avoiding heavy leverages. Try trading Mini NIFTY futures in small quantity which allows you to take directional bets on both sides.
I feel the best strategy is to play like a boxer who is just staying away from his opponent and placing high frequency jabs from a distance. Getting near is too risky!
So should one act brave and buy this fear? Ask the brave guys who bought a JP associates while it was falling down!
I’d buy the fear but only in small quantity. There is a very high risk of this market testing lower levels. Even if you don’t buy now, you will only miss “a few opportunities” but you might end up saving a lot of money.
Just as no price is “high enough” for stock prices, similarly no price is “low enough”.
The world is going through turbulent times and the US consumer which formed the central engine of US and global growth is under a lot of stress. Major banks like Citi are still facing possibility of huge writedowns (till date $180 billion+ has been written off in the banking system) and there are big question marks on its survival.
The world doesn’t end in a recession but stock prices do stumble a lot in recessionary times.
You might have to reconsider your “equity exposure” in the short term. I might be wrong but the price trends tell me that we are still headed down.
So this might be a time to change your strategy -like resort more to short term trading and avoiding heavy leverages. Try trading Mini NIFTY futures in small quantity which allows you to take directional bets on both sides.
I feel the best strategy is to play like a boxer who is just staying away from his opponent and placing high frequency jabs from a distance. Getting near is too risky!
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