Hello everyone.
Who is not wondering what the heck is going on at the exchange.
The answer is simple: No one knows for sure.
Even if you are an extremely experienced investor it is not easy to profit in high volatile markets. It's win or lose, like the current incident of UBS shows. An professional investor lost 2 billion dollars on one trade.
Most people do not like losing their hard earned money. That's why you diversify your portfolio, holding an equal amount of stocks and bonds on one side and on the other side gold and cash. Your stocks and bonds are well chosen. Of course you match up your diversification to the current economic situation. If stock markets drop and your chosen stocks follow this trend you will be liquidating those positions.
Easier said: Cut losses and let winners run.
That being said you should know what you do: Stay out of the stock market until you see a clear sign of an uptrend.
Maybe you are familiar with short-selling stocks, which is speculating on falling prices. In my opinion even this is uncertain at the moment. Imagine being short on a stock and maybe even with leverage, just to be suprised by a new uptrend because of an economic rebound...
As long as we face high volatile stock markets, one of the best and safest investments is gold - as my prior analysises show. Taking a look at todays performances you will see that gold again is the only winner wheareas every stock markets is red...
Keine Kommentare:
Kommentar veröffentlichen