XJO - Bear Posts only (Factors which might cause the markets to fall), page-3030

Well, you could be right or my comparison could be right. We will just have to keep monitoring the charts and the data and see how it plays out. The only way you can lose is to be in cash when the market recovers. There are ways to remain exposed and benefit (long term) from moves to both the upside and downside. For example, buy an asx200 etf - which should do well with China opening up and going gangbusters. If the market drops 5-10%, sell the a200 and buy an S&P500 etf (eg SPY) - which should make twice as much going up because its down nearly twice as much as the asx200. If the market drops a further 5-10%, sell the SPY and buy a Nasdaq etf - which should make you nearly twice as much as the SPY because its down nearly 35-55%. If the market drops a further 5-10%, sell the Nasdaq etf and buy the Ultra Long Nasdaq etf (LNAS) which will make twice as much as the nasdaq going up. The trick is to have a strategy in play that means you will come out of any dip better than what you went into it. - You can never lose holding index etfs because you are not holding a portfolio, you are actually holding a zero risk momentum algorithm (long term).