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By Pehon | July 31, 2007
We’ve seen the STI recover from the lows of 3444.05 to the 3577 levels over the last 3 days.
With the US market looking for a firm opening today after positive earning report and positive economic reports, it looks like the worst is over.
Or is it?
In addition, China’s stock market doesn’t seem to be stopping, even after capital control measures are put in place.
The current volatile global market is happening from time to time. If you panic sold last Friday, you’ll probably be finding that the stocks you sold will be climbing past your sell price in no time.
In addition, you’ll be selling your stocks cheaply to smart investors who are looking to buy your stocks cheap!
The current volatility can teach us several things. The most important lesson is to invest for the long term. Had you not panic sold your stocks (assuming you did) last August and last Feburary, you’ll probably be sitting on a handsome profit now.
Long term investing will reduce your investment’s risks. Forget all the fears of a down turn. Unless the fundamentals change, remain vested, forget about short term volatility.
Topics: Indexes&Economy |