Agreed. These are the risks at buying at such elevated prices. The market can correct quickly and leave you out of pocket quote a lot. People who bought last Wednesday at $161 are now down -6% in only three trading days. Now you are in a tough position, do you hold and hope it can rally again, or does it drop -10% from the Wednesday cost base?
When a stock pops 50% in a year and you're buying at the top end, and there are no significant improvement in earnings - you absolutely need to be open to the idea of a steep correction. But then CBA has only gone up for a 12 month period, so is it within the investment community's psyche CBA cant go down? Dangerous assumption if you think CBA is now in a post correction era and the price cannot go down.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)