Trading the corrections #Philequity "Even experienced traders and investors can sometimes get caught off-guard with the sudden incidence of stock market corrections." Time and again, we have said that corrections are extremely hard to catch. Since there are many factors that affect corrections, it is difficult to predict when they will happen, how deep they will be and how long they will last. Since the correction interrupted the bullish move of the index, we advise investors to review their INVESTMENT GOALS along with their asset allocation and equity exposure. We would advise : 1. short-term traders to be quick and nimble since the market can be very volatile during corrections. 2.Long-term investors, on the other hand, can stay the course and rely on the fact that our secular bull market is intact and our structural growth story remains strong. 3. Those who are underexposed to local stocks can buy on dips or buy in tranches in order to build equity exposure with a low cost base. 4.Those who are heavily exposed to equities may take this chance to realize some profits and lighten-up. What is important is for investors to maintain exposure levels that are consistent with their investment goals, time horizon and risk tolerance. At the end of the day, investors should maintain exposure levels that will allow them to SLEEP WELL at night in times of volatility and corrections.
Posted on: Mon, 10 Jun 2013 01:09:20 +0000
Trending Topics
Recently Viewed Topics
© 2015