Crashes are sharp and sudden, and it is the unexpected that causes them. Fed stimulus cutoff is not unexpected, neither are the risk of rates hikes. So using these as the catalysts for a downturn are pointless. They are known events, and the market is still rising.
I have also noticed that by not selling out in corrections, even in 2007/8 when looking back, that drop is nothing compared to the growth my long term portfolio made over the years following by being invested and allocating to positions during the crisis! I believe corrections and crashes are good to acquire more, not to sell out and wait, then one only waits and misses out on the gains by being too scared to enter again.
not that what i say will matter but if you guys could please pull the trigger to have a correction after moximas weekly target of 49190 i would really appreciate it. im ocd and hate having unfinished patterns on my chart. i was long yesterday long today and i'll probably still be long tomorrow unless the 15 ema is out to get me
it all depends what the investor thinks is fair value... (not saying any of this is the case, it could or it could not be) if the company grows like hell and its earnings explodes or there is a possibility of that, maybe some people think its share price can go up?
I think most of what is said here has merit. I try not to fall in love my holdings, but so difficult not to - so far they are keepers. I do however have concerns for people coming with "new money" to this market and advised by the "clever people" be it TV or so called financial advisers to throw money at certain shares.
Lets see the "will" of long term investors when certain stop losses operated by fast computers kick in! People will curse the stock market! We have no idea how big the global derivatives market is! Remember the derivatives market was small in previous crashes 1987 / 2008 etc.