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28 Sept 2016 (TheAge,SMH) – What to do in a falling share market

[COMMENT: Of course, the information herein does not constitute “advice”. It is the opinion of the named author. And many other seasoned investors might also think the same way.]

(28 September 2016, The Age, MONEY supplement, p4, Marcus Padley)

‘… With the US markets on the highest price-earnings ratio since 2009, the next illogical sentiment change could come at any time, and when it does, here are a few things to do and not do. Don’t average down, otherwise known as buying into a falling market. Averaging down is what brokers tell you to do when they’ve put you into the wrong stock and are too proud to admit the mistake. Averaging down goes against all technical principles and compounds mistakes rather than improving them. Don’t shut your eyes and declare your faith in the long term by changing your time horizon from 20 minutes to 20 years as all of Warren Buffett’s disciples preach. Buffett can afford to do that but you can’t. You need to act and react not bury your head in the sand.’

Read the full story at SMH.com.au

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About robertbrain

Brainy's Share Market Toolbox. Read the honest truth about the sharemarket. Develop or fine tune your investing/trading strategies using share price charts (technical analysis), or learn about the investment strategies of others. Melbourne (Australia) based - supporting share market investors and traders to build wealth through smarter investing using my Share Market Toolbox arsenal of weapons to tackle the market.

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