With markets in free fall over the past two days, the question for investors is what to do? Here is a quick list of things that I go through in market downturns:
1. Don’t panic – assess the situation rationally.
Retail investors have a distinct tendency to buy when markets have risen and sell when they have fallen – i.e. buy high and sell low. You need to make a rational assessment of where the market is, what further downside is possible.
Right now we have economic conditions in the US starting to boom, dragging the rest of the world higher through increased demand. Additionally, the USD has fallen significantly (before yesterday), exacerbating US demand growth.
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