It has been doom and gloom for the past few weeks. The world seems to be falling apart. I am sharing some of my experience of the past 1 month or so....
On the share market
I remember one morning my boss suddenly called for a meeting and asked my opinion about the market condition and the directions. I just told him to stay away from the market. Don't look at the index and individual stocks. The time is still not ripe for bottom fishing. We are still not feeling the pinch. So should just wait for more tangible impact such as slowing sales etc.
Not doing anything is also a strategy. I suggest to start looking when the index goes below 1800 and may start buying slowly at around 1500. Worst case scenario is probably around 1200.
On my own share investment
I am glad that many of my counters are now at low 10~ 20 cents. Many others are at 50 cents range. The good news is bottom is near. How much lower can they go? Surely wouldnt drop to 0.005 if the companies are still profitable. 5 to 10 cents would probably be the bottom where all of the negative news factored in.
Forget about fundamental or technical analysis. It is non sense to talk about PE or ROE now. Cheap can get even cheaper.
I just hope they would stay at such levels for a while for me to accumulate more. I really hope for the market to drop further more. If you want to make a lot of money from shares, this must happen. When people complained about high oil prices and rising costs, i gave them 2 options. 1: let the bull continue to charge but u make enough from shares to cover or 2. wait for the whole financial world to collapse and we start the cycle all over again. Sounds simple is't it but this is very true. If the cycle doesnt repeat itself, how are we going to afford to buy a car or condo?
Sometimes i look at people face they are really worried. One senior colleague near retirement age still buying heavily into Keppel and OCBC. My God, it takes a brave heart to see prices dropping like bird poo. I wanted to bet with him that that Keppel Corp would be at $2 to $3! Anyway buffer another 50% from current levels should be just fine. Sounds complacent? Lets wait and see..
If u have a longer time frame and do not borrow to invest, then u should be happy with the current crisis (of course assuming u still keep your job and no pay cut). I am happier by the day and hopefully my job is still intact by the end of this correction. When i think that i might be able to buy stocks that i could not afford before, its mouth watering prospect. This is driving me on..
On asking the central bank to compensate for losses on investments
Sorry to say but i think not easy. I spoke of this with my dad over dinner. His first reaction is. If these people made money, would they pay the government? probably not. When i lost money by investing in companies run by crooks, who will compensate me? Nobody. Just bad luck. You can blame the company management, the analysts and yourself but so what? Life goes on and on...
Greed is the devil.
On personal life
Hey man. Enjoy life. F1 and Liverpool ....
to be continued.....
No comments:
Post a Comment