This is a very perplexing question as stated in the header and can bring jitters to any trader. Not to worry as still situation is not as grave as Lehman brothers situation and one can relax as Italian bonds are being bailed by China. We need to worry only if financial crisis situation occurs in China, than who is going to bail them out.
Just remember that volatility is a reflection of the news flow rather than any structural trend. We will take the question of Lehman crisis in correct perspective and will see in light of two conditions i.e. if there is no default, there is nothing that goes wrong. The maximum downside in case of nothing going wrong is a 10% downside, but if there is a Lehman like moment, then clearly the market can easily go to much lower levels of close to 12,000 to 13,000. Thus to be ahead of the market do remember to visit our free and daily researched market tips for today site.
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