What does it mean for our Investments?
- Mutual Funds - If you are still invested in equity funds then use this bounce to exit the market. If you are in debt/bond funds then keep an eye on them and be ready to exit and cut your losses (NO more than 8-10% loss). Considering current economic outlook, equity markets and bond markets, both may take a hit causing significant damage to your investment portfolio. The best place to park our capital for now would be liquid funds or cash/CDs.
- Stocks - ONLY invest in very convincing patterns and DO NOT forget to have STOP LIMIT in place.
Market appears to be range bound yet vulnerable, hence be cautious...