If you want to understand how much volatile markets are, pick a cyclical (cement, auto etc) stock and compare them with just 4-5 weeks ago. Most of them were trading near their 52-week high and now they are more close to their 52-week lows than they were near the highs then.
There is a lesson in this for new investors. When uncertainity hits cyclicals drop the quickest. Thats why their allocation in a long term portfolio should be managed and adhered to with stict discipline.
The aggresive growth can quickly turn into a free fall in times of uncertainity.
There is a lesson in this for new investors. When uncertainity hits cyclicals drop the quickest. Thats why their allocation in a long term portfolio should be managed and adhered to with stict discipline.
The aggresive growth can quickly turn into a free fall in times of uncertainity.