How to Stay on the Right Side of the Market

    by Chris Gessel

    On Monday, May 17, the stock market got hammered from all sides:

    • The Nasdaq gapped down and tumbled 2% to its lowest level for 2004;
    • Oil prices surged to new highs;
    • A car bomb in Iraq killed the president of the Governing Council; and
    • The election of a left-leaning government in India unleashed selling in that market as well as the scores of U.S.-listed companies that do business in that booming economy.
    How did market-savvy investors react to the sell-off?

    Calm detachment. Indeed, it’s easy to watch the market fall when you’re sitting safely on the sidelines in cash. Careful readers started taking money off the table a month earlier, weeks before the market averages started crashing through their long-term 200-day moving averages.

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