What does it mean for our Investments?
- Mutual Funds - If already invested in equities then either stay put or pull the plug. Sometimes its better to take gains than watch them evaporate. If you want to play LONG term then be prepared to bear lot more pain if market takes a nasty drop. If in cash/FDs/liquid funds then wait for next low risk opportunity (possibly if market bounces back into the channel).
- Stocks - ONLY invest in strong patterns with good earnings guidance and DO NOT forget to have STOP LIMIT on open positions. Check out our trade size calculator to manage your risk along with potential buy candidates watch list.
Caution is warranted especially for opening new positions...