Avoid stock investing at this time - major correction seems ahead

Monday October 22, 2007

With the significant plunge in Dow Jones on Friday made a worst scenario all over the world. The major stock markets of world were badly hit on Monday post US stock market activities on Friday. A strong 366 points plunge in Dow Jones industrial average was one of the major reasons along with weak news from credit and housing front. Japan’s Nikkei stock market was down 2.24%, Hong Kong's Hang Seng index was dropped by 3.7% almost 900+ pounds and along with weak opening in European trading market with fall of more than of 100 point in Britain's FTSE 1.21%, France's CAC-40 fell 1.75%, Germany's DAX index fell 1.29%. Indian stock market which was badly hit about 2000 points in Sensex from it highest point of 19000+ near to 17000 in just two sessions were recovered somewhat after getting some positive news from domestic front along with better quarterly results.

Looking at the present scenario it clearly seems like there is still a major correction ahead in US market stock market along with strong volatility. At this point I would like to short the market and at every significant dip of say more than 300+ point I would like to do bargain hunting in selected stock pick from long term stock investing point of view.