One of the good things with a widespread correction is that it affects most companies. Granted, not evenly, but most are off recent highs. In other words its better than watching one stock you own heavily go into freefall because of a bad announcment.
This gives you options.
Hold what you have and wait, hopefully for a general market rebound. The market will always rebound, but will affect companies in different ways depending on the sector.
Sell now and hold in cash and wait for the trend back up then buy back in.
Or sell some of your current positions and move into stocks with more chance of a better rebound.
Any choice in my opinion at this stage should be made taking a firm view of fundamentals.
Take your holding in PEN for instance. Good company, good recent announcments. I dont hold now, used to. Bad sector at the moment. Make a considered judgement, based on the facts at hand on whether you think the sector will recover. If it does, would your money be better in something like a PDN? Or if you have doubts, would an investment in a coal or gas company give you better returns?
Remember that you have options - if you sell its less than what you could have sold for, but you need to forget about that because apart from the U sector, any buying is at the same or similar depressed conditions.
Follow the fundamentals and watch the trends. At this stage i believe this to be a correction. Barring any more bad news out of Japan or the middle east, i doubt we will see 4000 soon.
Kates, hope this doesnt mean you will leave the DT thread in the meantime??? Would be a shame.
