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US strong economic recovery: end of JSE bull market?

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AP
Regular Contributor
Hi! I've started investing beginning of this year and have done well this year (above 21% growth). However, due to my inexperience as a result of my short time in the market, I get nervous (sometimes too quickly ...). Last week's good US economic data and subsequent likely earlier/definite ending of their famous stimulus programme sparked a sale-off of equity in the development markets (resulting in a 1.5% drop on my side in 2 days!); does this mean that the 'correction' that everyone is expecting may be arriving earlier or could it mean the end of the bull market? Those of you that have bee around longer than I or more experienced, please comment... Should I be nervous or just wait it out?
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8 REPLIES 8
Rams
Super Contributor
You can be nervous and wait it out.....more serious note.....work out a strategy for entry and exit( even for investments)......and ignore the noise. you can hedge, you can exit, you can place a stop loss, you can add more when the market corrects ....
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mullet_fish
Regular Contributor
just be patient...and hopefully have a long investment horizon...over-re-acting and panic seldom pays off......
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Prestonmyhusban
Regular Contributor
and you can shop at Truworth.............
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Preston
Super Contributor
One golden rule "The market can remain illogical more longer than you can remain liquid" Write this down and develop strategies around this golden rule. Case in point: WHL is such an excellent company, It started the year at R72 and now it is trading at R71.60 , go figure?
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Rams
Super Contributor
Yep, put up the blanket analogy on the wall?.......
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Preston
Super Contributor
sorry, i would be accumulating blankets.
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AP
Regular Contributor
Hi everyone, many thanks for all the comments! It is of great help and the sarcasm/humour is always interesting. My conclusion is that nobody really knows what will happen, but the critical point is to have a plan/strategy to deal with the market swings... Unfortunately, sometimes hope that one would get a simple answer... Next chapter of my experience is to develop an optimum tax strategy...seems again this is not straightforward...
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Rams
Super Contributor
AP,keep it simple...enter only when you know how to exit...
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