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Dealing with market corrections.

Publication: Risk Management
Publication Date: 01-DEC-05
Format: Online
Delivery: Immediate Online Access

Article Excerpt
A correction is a beautiful thing--simply the flip side of a rally, big or small. Theoretically corrections adjust equity prices to their actual value or "support level." In reality, it is much easier than that. Prices go down because of speculator reactions to expectations of news,...

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...speculator reactions to actual news or investor profit taking. The two former "becauses" are more potent than ever before because there is more "self-directed" money out there than ever before. Therein lies the core of correctional beauty. Since mutual fund unit holders rarely take profits but often take losses, opportunities abound.

Here is a list of things to do and/or to think about doing...

NOTE: All illustrations and photos have been removed from this article.



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