If you listen carefully...you may be ready to listen to the large blue chip investors whispering nervously regarding the "R" word.
Across the U.S, sobering housing statistics are beginning to replicate the sharp slowdown over the past year.
U.S. home-value growth slowed throughout the second quarter from a year earlier in the sharpest three-month plunge on record, per a government report that indicates this year's housing slump is deepening.
Does a slumping housing market extremely hurt the general economy? Several sectors of the economy are tormented by the housing market: appliances and furnishings, building materials, the finance industry. So...yes.
Said one market analyst, "We're 99% certain that we're going into a recession. A heavy bear market is possible."
Perhaps, but, when it comes to penny stocks, there is continually a bull market somewhere.
In late October 1929, Wall Street collapsed; on March 10, 2000, the NASDAQ hit an all-time high of 5132.52. Before, between and since, there have been several ups and down; some short and steep, others gradual and prolonged.
What is a bull market? A bull market is a prolonged rise in the prices of stocks, bonds or commodities, usually amid feelings of economic optimism. Bull markets are characterised by high trading volume - everyone wants in when prices are rising.
One study I browse noted that over the past half century, the typical bull market has lasted 5.5 years.
What is a bear market? A bear market is the other of a bull market. Prices fall over a chronic period of time. A bear market is usually brought on by worries that the economy will fall off.
Over the past 0.5 century, the common bear market has lasted 12 months.
The shortest bear market lasted for four months, between August and November 1987. However that baby bear ushered in the longest bull market; lasting more than ten years.
Why is the prospect of a bear market not as daunting as it might sound? Because an economic slowdown means that while the market could be overvalued - - new investment opportunities can still pop up.
It could not be a penny stock picker's paradise, but the market certainly is not devoid of bargains. You only need to appear where others don't.
And looking for bargains is a heap easier than making an attempt to time your trades to require advantage of the increase and fall of the market. Studies have shown that the most important gains come back on a handful of trading days.
Still, penny stock investors have a tendency to be more speculative in their investing strategy than the average investor. However even penny stock speculators want to define their strategy.
Why yes, "purchase-low sell-high" is great recommendation, but few can consistently rest their laurels on that pearl. Instead, you'll want to consider a "stop-loss" or a "stop obtain".
A "stop loss" is an order to sell when the value of the stock declines to, or below, a stated price. A "stop purchase" is an order to buy a stock when the worth rises to a bound level.
Because even a penny stock investor will never be too careful.
Author Resource:-
Dorish Hill has been writing articles online for nearly 2 years now. Not only does this author specialize in Appliances, you can also check out her latest website about:
First Aid Kits For Sale Which reviews and lists the best
First Aid Supplies
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