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?

In this article

Share this article

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.

To read more, please become an AAII Registered User or CLICK HERE.

First:   
Last:   
Email:

              
→ Chris Gessel