Crash. What Crash?

[Owen]

I would be interested what views you have on the events on the world stock markets this last week. is this a crash/very severe correction unfolding or simply a blip? Particularly interested in those who make many investment decisions themselves as opposed to paying so called professionals to do the job for them.

Regards

Owen

[chessfou]

Nobody knows, no-one can tell. The (very rare) common sense thing to do is to assume it is a blip (it's less, at least in % terms, than the drop last May) caused by normal human emotion (a.k.a. panic). On the basis of fundamentals, many/most markets are still cheap or cheapish (especially compared with other assets, notably UK residential housing). I wouldn't like to be leveraged, though (protect the downside).

[powerdesal]

[quote user="Owen"]I would be interested what views you have on the events on the world stock markets this last week. is this a crash/very severe correction unfolding or simply a blip? Particularly interested in those who make many investment decisions themselves as opposed to paying so called professionals to do the job for them.

Regards

Owen[/quote]

We make our own investment decisions ( I say WE, but I get told when and what - I just earn it [:)] )

As far as we are concerned its a normal market movement, OK worse than average perhaps, but we took no action in the hope that the (panic) reaction will not spread and we dont want to contribute to it.

[Owen]

Hello,

Thank you both for your comments and certainly nobody knows for certain. I tend to take the view that whilst it may not be a crash unfolding it could be a general decline lasting a couple of years and pehaps purchasing a bit of protection through put warrants may be in order.

Regards

Owen