Thursday, August 4, 2011

should you sell?

got a concerned email from one of you today asking if they should sell all their stocks and get out of the market.

my answer ... Today is pretty ugly that's for sure. As you know I haven't touched my 401k so I'm watching that slide as well.

I have to assume we will have a short bounce again tomorrow or the next day, but my gut is that we have more downside before we have up.

Most corrections are contained in an 8% drop, then the next notch is 12% for a mild correction. After that ... We get 20%. 95% of all corrections are less than 20%. So, I would guess we will hit 12% from the top, then bounce up to 8% and then who knows ...

So, I think selling in a panic is bad, but I don't see a lot of upside in the very near future.

I hope this helps, I'm sure it doesn't ...

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