Market correction

The much anticipated Market correction happened last week, though it's not clear if we have corrected enough. No one can tell that as the markets are based more on psychology than on economic conditions. Sometimes there can be an avalanche, like what happened last week, other times the markets will just get up, dust themselves and start the climb up.

US stocks normally do not face the same volatility as Chinese or Indian stocks. But the looming housing bust in US might derail the stock market advances. This should give savvy investors opportunity to get in to good stocks. Right now I'm still in the market, though lost a quite a bit of gains last week. Opened some new positions and still waiting to see what will happen this week. Options might be a safer play if one doesnt want to commit money in to stocks. But remember options decay really fast in their values.

The decline in Gold prices is also good news. Almost all the asset prices have gone beyond the reach of common man and this is true throughout the world. It is high time that these prices come down to the ground and as they do they will create great opportunities for those savvy investors.