MICHEL PIREU: Countering a looming market crash easier said than done
Majority of investors know what to expect from a stock market correction but not how to avoid it
Despite the market corrections of late there remains a great deal of concern among investors that the stock market is in for a bigger fall, something they’re helpless to do anything about. “This baffles me,” says Ranjeet Singh at London Stone Securities, “because if you know something is about to happen to you which is going to be painful then surely it would make sense to do something to counter it. “It’s the equivalent of a deer being caught in the headlights of an oncoming truck and not moving out of the way. The only difference is that the deer has far more reason not to take preventative action. Firstly, the poor thing has no real idea about what is about to happen to her and secondly even if she did, and depending on the speed of the truck, she probably doesn’t have a huge opportunity to get away. “The same can’t be said for investors. Most of us have lived through stock market crashes before and so we all know exactly what is coming and what to expect. Furthermore, and unlike...
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