The Fed’s decision to stand pat on rates disappointed investors as those who have been finding fault with their strategy for many years had something more to complain about while others were understandably concerned over their cautious view of the economy.
The market weakness on Friday is likely a sign that the market’s rebound from the August 24th lows is over. I am still not expecting a major decline to significant new lows but it is possible. In my experience when the WSJ recognizes the flag or pennant formations it is less likely to be resolved in a classic technical manner.
I do think that the investors should be using the current market decline to start making solid plans for what they will do with their portfolio in the coming months. This is true for those who already have a stock portfolio as well as those who are in cash on the sidelines. The failure of investors to have a concrete plan for their portfolio often means that they end up reacting emotionally which adversely impacts their portfolio.
Let’s look at the likely scenarios over the month or so and why it will be important to take a proactive approach to managing your portfolio.
Vía Forbes Real Time http://ift.tt/1Olku0K