The third alternative has different implications for investors. Investing in the stock market requires care. When the market crashed, investors can be a number of alternatives. At least there are three things you can do.
The first, which is held or not in stocks or mutual funds to sell the property, “said Eko, could be made on the basis of the stock market always turbulent. Although there are still doubts how long can survive these conditions, but those who are a horizon duration of the investment is still long enough to believe that with time the market better.
Options in order to survive, is also on the efforts to prevent the realization of losses with the expectation of improved market conditions. Those who live deliberately, is the purpose of investing in equities over the long term, thus allowing the patient to improve the global economic environment and market conditions remain suitable.
Seconds for the purchase or invest in stocks or mutual funds. Investors who believe the second option inii took losses over temporary and permanent stock market as an attractive investment for long-term view.
Correction and reduction of prices, which occurred only a chance to buy stock or mutual fund shares at a cheaper price. Investors also saw the potential of a more attractive investment if the market improves again.
For investors who already are asset allocation strategy is working, the decline in stock prices are used by investors to increase their investment allocation strategies have been defined. This is often called the portfolio rebalancing process.
third, the sale of own stocks or mutual funds are. These efforts are usually made by the investors to avoid even greater losses. Most investors realize gains are not likely to risk and try to timing the market. Normally, the effects or sell shares or mutual funds are the investors take losses, so that a switch to another instrument, and lost opportunities if the market rises again before to buy.