October 21 this year saw the biggest rally in the last 12 months. You saw how amazingly, the S&P 500 which had lost up to 7.5% recovered 5 % from 15 October in the bat of an eyelid.
Long term disillusioned and unlucky investors, who have long been hoping to come buy discounted stocks, jumped on this bandwagon of short-time opportunity to buy into the best break in the last few years. Barring a few occasions in 2012, the S&P 500 has not had a good bargain for a long time, and on both these occasions, did not qualify for a "correction, " which called for a 10% drop or better. The year 2011 was the last time the market correction exceeded 10%.
Sad stories of how some amateur investors lost everything to the big decline in 2011 in a span of just about two hours on 15 October when they were visiting friends and shopping, are depressing to say the least. How much they would have regretted being away at the crucial time making some low cost buys, is anyone's guess.
Professional investors and traders are always stressed out whenever the stock market falls, and executives feel a threat to their bonuses at these times. Buying into a crashing market can pose a risk to the jobs and reputations of even the normally calm and secure portfolio managers.
You do not have to be a genius to figure out that habitual investors, who regularly invest with retirement plans on their mind, seem to have a benefit compared to professionals in the field. The answer is simple and straight; yes, patience gives them the opportunity to wait, watch and invest. Investments on a regular basis, in both favorable and hostile market conditions render them healthy benefits when the stock market rises, and their best returns are during the bad times when their portfolios start to fatten. During the recession in 2008/2009, many of the investors unquestioningly followed Warren Buffet's advice to be watchful when others succumb to greed and become greedy where others fear to tread, a strategy that refuses to work when the other investors do not surrender to fear. Notwithstanding whom or what you blame, be it the propping of markets by the Federal Reserve or just sheer enthusiasm, the investors hardly flinched this month when they saw the stocks dropping, said David Santschi from Trim Tabs Investment Research, after analyzing the data and trends of his company's mutual fund flow.
Individual investors wait patiently for the inevitable day when even the best stocks will see a decline. Anyway, who knows whether newly emerging economic data or information about fresh earnings will upset the apple cart to de-stabilize the market once more, but only at elevated prices?
Economics offers the only comfort in such scenarios, because a recession is not a foregone consequence of declining stocks as you have seen during the stupendous drop in 1987. A robust stock market is a sure pointer, offering assurance about the smooth operational continuity of the five year economic recovery plan of the US Government. The economy may not indicate windfall investing bargains, but more or less assures Americans that they will keep their jobs and can expect a marginal salary augmentation.
Under these uncertain conditions, many investors are pleasingly intrigued by offers from VoIpTel Platinum Commodities, leading alternative investment promoters who offer interesting investment opportunities in far ranging commodities like gold, silver, Australian wheat and reforestation, wine and platinum with attractive returns on investments that and fully guaranteed by banks. What more could an investor ask for?
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