The prescription for the investors is not to get panic. What ever loss one have suffered cannot be recovered within this phase ,and by becoming panic you can neither get it back. The best tip for the coming months is this stay away from the market, concentrate on your business, work and life. This red mark on the market will continue as more negative quater report will come from the global markets. Specialy the quater results of US and Europe will e more in the deep negative zone which will have a negative impact across the globe.
Regarding the query of the level to which the market can fall the only thing I can say is this THINK FOR THE WORST DONT HOPE FOR THE BEST.
It is very much impossible to predict the movement of the market. Let the hurricane on the market be over then only we will get a clear picture regarding the future movements of the market. The only thing that can be suggested from the lessons we have got is this never be too much greedy, know your limitations and risk taking capability, never work out for short term return and look for a long term horizon with a specified target of making return.
The crisis of funds have put brakes on the growth of the corporate figures across the world which will reduce the investors expectation or rather a mismatch of expectation which will result to fall across the globe.
Don’t get tempted by the reduced or lower cheap valuation of Quality stocks as their might be some more correction due the above mentioned things which will give a huge opportunity to get these stocks really at an impossible cheap valuation.
So for the time being keep your funds in your pocket and concentrate on other activities of the life.