Friends – I do not have an answer to the question above. After all we all have lost money today.
But I know that you must be wondering on the future course of action – hence I am sharing my thoughts
The market is in the grip of bears now – I expect more down movements in the next few days.
If you look at the reason for this, it all points to China – their economy is slowing down and their stock market was going up till one month back - their government trying to stem the stock market fall – they are devaluing their currency – the oil and commodity crash is also due to slowing Chinese demand.
These cannot be reversed. And so there will be a china induced shock in the global markets.
The countries that are commodity exporters like Australia, Brazil, South Africa will all get impacted due to lower exports to china.
Those countries that are competing with china in exports like Japan, Malaysia, Korea, Taiwan all wil