Back then, STI was recovering from the dot com crash or the technology slump as it was inching steadily upwards from the bottom made in October 2001. All it seems well until SARS came into the picture. From then on, STI began to tank all the way to the bottom made in October 2001 before rebounding it off again.
Although, I can't say that STI is recovering from the bottom made in March this year, it is some way off the bottom already. I'm pretty sure nobody heard of the swine flu until a few days ago only and suddenly, the swine flu seems to be dominating the headlines everywhere. This is a new event which can prolong the current bear market even if it seems that the market and economy is recovering.
No one knows whether STI will revisit the previous lows or even break them. The most important thing is to plan on what to do if and when the market reaches these levels. And what I'm suggesting is that if this comes true, the market may be offering another chance for you to pick up quality counters at a less dearer price once again. Do get ready to brush aside any pessimism and base your decisions on fundamentals and logical reasoning.
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Hi Kay,
ReplyDeleteAn informative and enjoyable article to read. Thanks for sharing.
As suggested, I'm all geared to pick the right stocks to invest when the opportune time strikes. Can I seek your expert advice on what you think of stocks like straits asia, synear and yongnam? I was thinking of holding straits asia for about 6 months.
Thanks.
Hi Barack,
ReplyDeleteI'm glad you enjoyed this article. Unfortunately, with regards to the stocks you have mentioned, I have not done any analysis of these stocks so I'm not able to give you any opinions. I do think that 6 months is a rather short time frame for investing. An appropriate time frame would be a few years actually but that would require patience.
Otherwise, you can buy index funds such as the STI ETF or the DBS STI ETF 100 if you are not confident of the fundamentals of these stocks.
Kay
Hi Kay,
ReplyDeleteThanks for your valuable input. I've started reading intensively about the stock mkt as well as monitoring some stock movements to better equip myself ahead! Will certainly consider your option of buying ETFs.
Thank you once again for your time and patience.
Hi Barack,
ReplyDeleteIt's been my pleasure. I'm glad that you are reading intensively about the stock market. If you abide by the principles of investing, you should be able to do well. All the best.
Kay