PRZOOM - /newswire/ -
Sarasota, FL, United States, 2006/06/15 - Investors who bought during the top of the frothy commodities rally are now panicking or kicking themselves. Neither activity helps an investor or trader think straight. StockInterview offers 9 tips in dealing with the current market shakeout..
StockInterview.com’s Senior Editor James Finch listed nine tips investors can use to survive the current market shakeout. He used uranium stocks as an example, but these might also apply to other types of investments. Finch suggested in his feature that investors ask several key questions about their favorite investment, which may now be ‘under water.’ He wrote, suggesting an investor ask himself, “Do you believe the fundamentals which engendered the commodities boom have changed?”
Finch recommended investors stop watching the ticker and concentrate on the company’s fundamentals. “Is the story still true or has it changed?” is one question investors should ask. StockInterview offered 9 investor tips in surviving the current market shakeout.
In Tip #4, Finch wrote, “There’s an old cliché that the time to buy is when you feel like dumping everything you own in the category. At the exact moment you want to sell your entire portfolio of uranium stocks, it may be wiser to add to your holdings. This applies mainly to the retail investor. Most of the professionals did dump at the top and are now slowly accumulating the shares of the naïve who waited until the washout to start selling off.”
In Tip #5, Finch wrote, “Has a major, earth-shattering event occurred? The last bull cycle in uranium ended with Three Mile Island (TMI). The last decent rally in the precious metals markets fell off a cliff after it was discovered Bre-X Minerals had perpetrated a fraud about its gold ‘discovery’ in Indonesia. Something significant and newsworthy always transpires, and it is also far-reaching. That is the trigger. As with TMI and Bre-X, those were the first shots which launched a later chain reaction to end those bull markets.”
Finch concluded investors should keep their eyes open during robust markets, writing, "Next time, when the markets are racing higher, and you feel like you won the lottery, consider this bit of biblical advice. The old joke goes: When did Noah build his ark? The answer of course is: Before it began to rain."
To read James Finch’s commentary on surviving the current market shakeout, please visit the Internet news website, StockInterview.com. The Market Outlook Journal feature is entitled, “9 Survival Tips for the Market Shakeout Blues” can be found on this webpage on the journal page of StockInterview.com.