Tuesday, 4 August 2009

An occasional rumination

For those who remained invested during the bear market, the recent up-trend in the market has been very rewarding. Those in this envious position are sitting on a profit buffer.

The severe bear market has resulted in a large amount of cash pulled out of stocks. The recent few months saw investors moving these cash into stocks. The pace was slow initially, but the prices have risen fast. However, it is my guess that a lot of money is still waiting to jump into stock. Some may be waiting for a correction. Perhaps, others maybe impatient seeing the prices going up almost daily.

History has shown that more people lost money in a bull market than in a bear market.

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