What's going on with the Greater China Fund? It's falling fast, should I hold or sell?

Question

When the GCH fund announced it's $6.66 capital gain per share, I bought 10 more shares. Then, the day after the ex-div date, it's share price dropped like crazy. I took a chance and bought 15 more shares. But now I'm just holding because the price isn't rebounding. I heard something about oil prices causing a panic in the Asia stock market and people are selling at all cost. Any advice or info out there to help me out?

Answer 1

DONT PANIC. If you liked it before, why don't you like it now.

First question, how long are you gonna keep your money in the fund, long term will pay off, it will come back. Short term, well, then you might want to sell and put the money somewhere else where it will generate a good return.

But with commissions and all, buying and selling and buying can be very expensive. Panic is the worst thing. Remember buy low and sell high. Don't sell low if you don't have to.

Answer 2

The thing is are yo a long term investor or a short term one. In long term the Asian markets will recover and go back to make new highs this current trend may last until a year or more so if you can hold for a longer durations I feel this is the time to invest in installments.

Answer 3

China has doubled and doubled again over several years. Their market is down 30% YTD. Vietnam market was also a hot emerging market and is down 65% YTD.

One needs to know that financials, oil and Iran are the driving forces of the markets right now. Technically speaking, the S&P broke support last year. We have been in a Bear market ever since = Lower highs and lower lows.

http://finance.yahoo.com/echarts?s=SPY#c...

It is not a time to be long.