What does it mean for our Investments?
- Mutual Funds - Are you out of equity funds yet!!! If NOT then time to rethink your strategy and act fast as you will NOT get any more warnings. If you are already out of market and invested in debt/bond funds then do keep a watch on them as current economic conditions appears to drag everything down including bond funds. So wait and watch if already invested in debt funds. The best place to park your money would be liquid funds or FD or remain in cash. You may also want to take a look at commodity funds especially Gold/Silver ETFs or Funds which track actual commodity and NOT derivatives of that commodity.
- Stocks - Better to stay on sidelines, if you are invested then take partial gains and have strict STOP LIMIT in place.
Market appears to be entering BEAR trend, stay cautious...