Has The Market Become a Bubble On The Verge Of Bursting?

Financial Headlines abound with impending doom and gloom. The most recent stock market gains are creating anxiety amongst financial professionals. Three out of 5 have been reported as saying that the market may be on the verge of a bubble or already in one.

But, as history has shown us, the market loves to climb a wall of worry. This current bull market cycle has been climbing this wall of worry for almost 2 years now. So what is an investor supposed to do? Have a game plan in place for when things start to go wrong. It is never a question of if but only a question of when. An investor must establish its pain points. Before emotion becomes an overwhelming and consuming driver in ones decision-making process an investor should write down on a piece of paper the absolute rock-bottom price they are willing to allow their investments to decline to. This will allow them to respond to a decline without the influence of heightened emotions.

Using market barometers like the NYSE Bullish Percent, can provide some insight as to when the battle between supply and demand within the market is beginning to meaningfully shift towards the supply side of the equation, bringing the defensive team on the field.

Find tools to help you create a game plan and maintain a disciplined approach to managing risk.

Always consult an investment professional before making investment decisions. Nothing in this post is to be construed as investment advice. All investments have a risk of losing value. short term cash loans no credit check