If you've got the funds, entering the
market during a correction or bearish period may yield you good value for your money, especially when you take the long view.
Most financial professionals will encourage you to stay the course or even invest
more during corrections and bear markets to reap the fruits of the bull markets that will inevitably follow.
The selling pressure that dominated the recent
month during the correction has weakened recently, and the small cap crash of the weekend might have marked the last leg lower in the move.
I want to believe that the worst is behind, but so
far during this correction, I learned that investing on margin can be quite stressful.
If you are already a subscriber of our stock trading newsletter, rest assured you're in good hands because we will continue profiting whenever the low - risk opportunities are there, but more importantly hold on to those profits by keeping you out of trouble while other traders and investors are giving back their hard - earned
profits during the correction from the bull run.
At different times investors would like correlated returns when markets are rising, uncorrelated returns when they're falling, absolute
returns during a correction, downside protection against a crash, the ability to go both long and short in a sideways market, the ability to be tactical and time the market at the inflection points and, of course, you have to consistently beat the market.
Thus, while the current period of risk - off trading could yet persist, longer - term investors should be looking for buying opportunities in
EM during this correction.
My dividend growth strategy has an annualized average return of 14.2 % since 1977, I get an increase in income each year (without hassling or losing tenants) and i have the advantage of being able to hedge or protect the value of my stock portfolio with stock
options during corrections which I don't know how to do for my real estate portfolio.
If the market drops 20 % I view that as a buying opportunity just as I did in 2008 - 2009 and
during each correction since (most recently January 2016).
Defense and keeping your bull market
profits during corrections and bear markets will improve your stock market performance more than just about anything.
«Our analysis indicates that information technology hardware and data networking stocks typically provide less downside protection than the broader
market during a correction.
Fears of rising inflation, along with worries about tighter monetary policy from the Federal Reserve, lifted rates and pressured
stocks during the correction.
Bitcoin was at the forefront of the decline, although coupled with the ICO ban, the likes of Ethereum and NEO are more affected by the new legislation, and indeed ETH fell
more during the correction than BTC.
During corrections and pullbacks, the main stock market indexes must hold onto this level in order for us to continue operating on the long side of the market with confidence.
Despite the move, the Aussie, and the also rallying Canadian Dollar are still well below the pre-crash highs, and as they have led the market
during the correction, we still remain defensive towards risk assets here.
One can't have unlimited amount of cash to average out
during every correction.