Welcome to the ‘risk-off’ phase of the cycle: For stocks, ‘buying the dip’ is now likely to be a ‘losing proposition,’ says UBS Please read the entire article at: https://www.investmentwatchblog.com...w-likely-to-be-a-losing-proposition-says-ubs/
It would seem we are in for a pullback, perhaps mostly caused by all of the media coverage saying it's going to happen, but I question how far down the market will drop. Keep in mind: I don't pretend to know. I don't think TV presenters know, either. In a world where interest rates are dropping, distributing companies tend to do well. I'm not re-investing right now but I'm not selling, either.
I personally do. I'm more hesitant and take profit sooner, but I stick to my stops that I have pre-determined when I enter a trade. There are two recent times where I closed all of my positions prior to a large event. 1. 2016 election. I closed everything the day before the election. I figured I may miss out on some profits, but the risk was much greater than the reward. I bought everything back days later. 2. Brexit. It was chaos leading up to that, so again, the risk/reward was not a great ratio.
Any system that can make money when the major, broad, indices are going down is a system with potential, IMO.
