Saturday, February 6

Stock market correction is an opportunity

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One month can make a lot of difference. I remembered just a month ago, the stock market was still very optimistic with analysts calling for a bullish market for 2010. On the contrary, I adopted a much more conservative and cautious view that this year will not be a repeat of the previous year of phenomenal growth as stated in my last post of 2009 here.



The highest closing level of STI so far for this year was made on the 11th of January at 2933.53 while the latest closing level made on this Friday was 2683.56. Thus STI has corrected by around 8.5% so far. Given that the economy is in the recovery phase and it is no longer in any recession, I doubt we will see any plunge of more than 30%. The level of around 3000 made last month was way too optimistic as mentioned before previously in my post since when the economy was at its peak previously, STI reached a level of 3900 only. As such, this correction will be a excellent time to add on to your current positions. I do hope that this correction will carry on further.

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