As you all know, the financial markets has been tumbling in the past few days. Every major indices have shed a lot in the past 2 days.
It looks as though the markets are going to be very unpredictable in the next few months to come.
How should the lay person react to this situation?
It is good to know your position in the market at the current stage. If you are comfortable with the amount in the market and you will be happy to keep it and just get dividends, then by all means keep holding and don't let the market get the better of you. However, if you are short on cash and you are using the financial markets to make money, then it is a good time to think of your strategies and new ways of playing with the equities market. Look into things like shorts and futures as you are able to bet on the market going down.
And keep in mind that it is always a zero sum game. May the best investor get the better of the market.
It looks as though the markets are going to be very unpredictable in the next few months to come.
How should the lay person react to this situation?
It is good to know your position in the market at the current stage. If you are comfortable with the amount in the market and you will be happy to keep it and just get dividends, then by all means keep holding and don't let the market get the better of you. However, if you are short on cash and you are using the financial markets to make money, then it is a good time to think of your strategies and new ways of playing with the equities market. Look into things like shorts and futures as you are able to bet on the market going down.
And keep in mind that it is always a zero sum game. May the best investor get the better of the market.
