frantic, It it wasnt the subprime it would have been something else. The aussie market had a bull run for over 4 years. A LOT of money was made. Now since Nov last year the market has declined quite savagely. I have lost over 20% on banks alone and it was a lot more a few weeks ago. The warning signs were clear for all to see that the market was running away and due for a correction.
You can either not worry about it, and keep accumulating investments over the long term in quality companies, or you can try and trade it both ways long and short.
Trading over shorter periods is risky, and trying to leverage off those trades increases the risks many fold.
Of course there are going to be losses, bankruptcies and corporate failures. And they always seem to be the ones either paying too much interest, offering something better than everyone else or providing higher risk levels.
