Markets go up and they go down. I'm sure several people have stocks they want to sell. There are two simple solutions for this dilemma:
1) eat the loss
2) hedge the stock by buying ETFs that short the market. Such as SDS which shorts the S&P500. OR RWM that shorts the RUSSELL 2000.
I realize I recommended uranium and have seen them drop subprime style but it is a long term hold on the secular uptrend in energy. Not a trading vehicle. And I still thought I was getting value with the companies, but in reality it just wasn't the case.
Shorting the market will not be on my list because I believe owning FXY, FXS plays on the condition why the market is going down...debt and no liquidity. Additionally, except for short term trading I don't believe it is prudent to take a short stance unless one has experience in handling the emotional roller coaster shorting entails. It is better to be out of the market and wait. I am long the dollar but I don't see any ETFs that can double your dollar position.
And I'm in GLD when the governments of the world will possibly print money to an extent that causes precious metal inflation.
IN A BEAR MARKET ONE WANTS TO PRESERVE CAPITAL. THIS MAY BE A SHORT TERM BEAR MARKET BUT NEVERTHELESS IT IS REAL AND CAN GO DOWN SIGNIFICANTLY LOWER, SO IT IS NEVER TO LATE TO PREPARE!!!
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