Call it a downtrend, call it a cyclical downturn, or a bear market. No matter how you slice it, stocks are in a definite slump worldwide.
Here's a daily chart of the iShares MSCI All-Country World Index ETF, AWCI.
The pattern of lower highs and lower lows since May 2011 is clearly evident in this ETF tracking some of the world's leading shares. This shows a bear trend, or at the very least, a months long correction in global shares.
Proceed with caution, folks.
2 comments:
I set up 10 model portfolios first
of this year. They are all down 25 to 30 percent. Each one holds 30 stocks. Shows you what i know.
Bill,
No shame in that. A lot of people's funds are down 25-30% this year, including some hedge fund greats.
Luckily, those are "model portfolios" you mentioned. Stocks tend to go down together in bear markets and severe corrections.
I'm of the view that cutting losing positions (ideally before they hit the -15% to -25%+ mark) is a good way to preserve one's capital. You can also stay in cash (or cash equivalents) when conditions are not to your liking.
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