I am preparing this while considering and catching up my past memories. My decision?  I bet on reversal.
Option? Add. Reason? I know what I owned. 100%.


THE STOCK MARKET IS EFFICIENT? 

In general, pullbacks and corrections are healthy. Because of shares being transferred out from weak hands over into stronger hands. On the surface everything looks peachy keen. It's true over the long run, it acts like a shock absorbers for economic potholes and speed bumps. But in the short run, all of us will hit a stretch of rough roads in which shock absorbers may seem they are missing. Hard ride.This makes the symptoms of investor's nervousness.

INVESTOR ARE RATIONAL? 

This is nothing new. The mass media and cyber technology have been contributing to the public nervousness. They've been reporting scary forecast every now and then for the past few years.

"Yesterday" they've been contributing to the investors with flash crash, debt ceiling debate, euro zone demise, election uncertainty, fiscal cliff, Iranian nuclear threat, North Korea provocative action, and they have succeeded in getting the volatility in the world market shaking with fear. Know what? Nothing changes. 

CAN WE IGNORE THE NOISES AND STAY FOCUSED? 

Today is no exception. Their forecast includes Chinese market slowing down, rising interest rates, EBOLA, euro zone stagnate, ISIS terrorism spreading, sell off in crude oil and will continue to slide, Hong Kong political unrest, tax inversion changes, security hacks, soaring US dollars, and half a dozen more concerns. Want to hear more? I bet you won't. The reason is, the outcome is the same. Disasters forecast will continue and emerging markets will prosper too. Which I believe more to prosperity rather than doomed. 

ABSOLUTELY UNPREDICTABLE?

There is always something horrible going on in this world. There will be never be shortage of concerns. Who knows tomorrow could bring an earthquake, terrorist attacks, Russian currency crisis,  Iranian regime change, hyperinflation and some unforeseen concerns. There are no where to run and hide. Bet on your own strength and strategies might be a good idea.

​THE BREAKING POINT?

While there are plenty of potential reasons for the drop stretched valuation and due to the ever changing list of concerns, the confidence of the recovery can get shaken, which in turn impacts CEO's confidence in spending and ultimately trickles down to employees, consumers and the broader economy. The cause and effect is based on the premise that financial markets continually trends towards disequilibrium which is evidenced by repeated boom and bust circles. Did you notice any changes of this locally? I don't. 

CAN WE IGNORE THE DATA?

Rather than succumbing to fears arising from those irresponsible mass media's intentions to play with their rules, sticking to your long term plans is paramount. Our confidence cannot be beaten down with the subsequent scary misplaced forecast over the past few years.

Patient long term investors have been handsomely rewarded. There will be plenty of economic thunderstorms ahead, but hiding in inflation is eroding cash. Attempting to time the market is a recipe for financial disaster. As usual, I follow my rules, always. 

​VOLATILIITY IS HERE TO STAY. FOCUS ON THE RIGHT SECTOR. 

That's why it's so important to have a discipline and systematically approach investment plan in place. Even during prosperous time, you can't escape the doomsdays. Too much of good things can also be bad. Rather than getting caught up in the day to day headlines, it's better to focus on the long term financial goals, objectives and financial metrics.

In the last few years, over exposure in the wrong sectors at the wrong time has the potential of creating financial ruin. It may be worst than the situation today. Financial markets go up and down but your financial well being does not have to become hostage to this temporarily volatility. A good pick at the right sector will be a great way to protect your interest. 

HOPE THE OIL DECLINE WILLL REVERSE.

If the oil slide, and not other related bad news is leading the major stock market decline, that is a good chance that the market may see a reversal in a broader way. Given the weight of this sector, mass unloading of oil related stocks might negatively impact the entire world. Will it breach the support point? Maybe not.

If the oil crisis is indeed the cause and effect of the current issue, that could presage the anticipated reversal in the near future. But if it's not because of the said issue, i hope that it is just a major correction and not a breaking point in this temporary high plateau of stock price. 

CLOSE WATCH. 

Nonetheless, it bears watching in days or weeks ahead to see the correlation between oil decline is indeed triggered the recent scary massive unloading from the financial markets.

Till then, the time will tell and we all hope for the best outcome.
 

P/s: Of course I will definitely like to take on the bet that the five years fantasy will continue to as longest as possible, so that all the traders in our circle has a chance to get away with minor scratch if not a profitable venture.

God bless all.