1. DJIA down 394.46 points. I hate to be the bad news messenger, but yes... DJIA was down 394.46 points last Friday. The market concerns on interest rate hike has started again. Bloomberg mentioned that "Federal Reserve Bank of Boston President Eric Rosengren said the economy could overheat if they waited too long to raise interest rates, spurring bets on a hike by the end of the year." Most commodities (crude oil plus gold) were down as well.
2. Long term investor to stay calm. If you have been in the market for at least three years, volatility like this is pretty much expected to happen one to five times every year. So nothing to worry about if you have the holding power to ride on the volatility. Stock selection strategy works best and I will hold on to PANAMY and IGBREIT. These company share price may decline on Tuesday but the growing dividend should increase the share price in the long run.
3. Short term investor should SELL. If you trade and have expectation of gaining profit over the next one month, please TAKE PROFIT or CUT LOSS. Such decline up to 400 points may be a start of short term declining trend. No point on holding on and lie to yourself about "PAPER LOSS". Loss is just a loss because you are trading over short term and these loss are likely to materialise soon.
4. USD has increased again, keep a watchful eye on LIIHEN. There are many export counters out there, but LIIHEN shines due to its huge dividend payout.
5. The only good news is Malaysia won 3 gold medal at Paralympic Games. Hope that the good news will boost the economy as well as workers gets inspired.