As chicken licken said the sky is falling

  1. 1,058 Posts.
    The worst thing to do now is to panic. Let us get a few things straight.

    1) the US stock market has been way overvalued for quite some time and Yields are very low and PE ratios very very high. There is a considerable scope for a much
    bigger correction than has so far taken place.

    2) most Austtralian stocks on the other hand are selling on sensible dividend yields
    and PE ratios.

    3) Nevertheless Australian stocks are going
    to get shafted in the short term. Overseas fund managers will dump them totally stupidly.

    4) Expect carnage at the speculative end of the market.

    5) So what to do. First if you are fully invested in the market sit tight and hope that it will come right in the long term.

    6) If you have cash or bonds out of the market then do not buy in yet. There is far too much danger of bear traps as the shorts cover their positions.

    7) Put your charting software away and wait until the market settles down before using it.

    8) get to work on your bottom trawling list.
    Now is the time to look through the market
    every day looking for bargains.
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