Is there going to be a market correction?

Sunday, 27th September 2009 19:51 - by Boredmum

There seems to be a lot of debate at the moment as to a market correction. Some feel that the rally has been going for too long and there needs to be a re-trace. On the other hand, there are still many stocks that have bottomed-out and still have a lot of potential. So if there is a market correction, what exactly does that mean and what are the signs? I remember last year as the market was falling, it just seemed like one piece of bad news after the other. I kept thinking ‘This has to be as bad as it gets’, but then it would get worse. It was a horrible feeling. So what are we to expect with a correction...10%, 20%...? I guess the answer will be that nobody really knows. If our stocks are strong, will they fall? Will the whole market be pulled down regardless? Certainly, signs to look for will be small percentage losses day after day. It will be a good idea to think of your exit point if this is to be the case. Obviously, keep an eye on the markets such as the FTSE, the DOW, and the S&P. Keep an eye on industry groups such as Mining, Retail, Oil & Gas producers and watch for falls in the sectors. The reason I wrote this Blog was not to tell you what to look out for, but to ask you. No-one really knows what will happen, or even if it will happen, but we all have different views and it would be great if we could generate a bit of discussion so that we can be prepared. There is a lot of expertise on these forums. It may be the Chartists, the Fundamentalists, the experienced, and the old-timers that have seen it all before (sorry guys). Either way, it would be great if you could add comments, however small you feel the contribution may be. Quite simply, having worked so hard on a recovery, I would hate to start losing again.