Hazy Work Day
Its one of those days where you woke up at 4.30 am cause you can’t get used of sleeping early. Contrary to what many of my friends believed, I don’t check the mkts but checked some NBA scores and read some decorating sites.
That hasn’t stopped me from noticing this article at Bespoke on the oversold conditions of the country.
Apparently,Singapore is not too far off the trading range as compared to some other countries.India is severely oversold by this standard. I am thoroughly surprised by this. This might present a good opportunity for you country timers out there. Have to say i seldom do that now. I find that extra alpha for the increase in beta to be something that requires more timing effort from me. Unless I feel bored, I don’t really want to time that.
Recent purchase in this correction or BEAR MARKET are Sarin, Celestial and Hongwei.
It should be noted that this can be a very short term correction or that it is an upward corrective bounce. Markets that go down dun go down in a straight line normally, so do keep a small portion for really distress buying.
Interestingly, while we are on this topic, this is really a test of your discipline and your tolerance of risk. It ain’t very comforting to see your portfolio in deep red much less think of buying anything.
I tend to take a very logical way of looking at it. People say that the past few months, Singapore stocks has been expensive. So now that it has corrected more than 20%, shouldn’t you go back and look at what u felt is expensive then? That is my approach, however putting a stronger emphasis on growth counters with a dividend yield or strong operating cashflow.
Gotta get to work. Will leave you with something from GuruFocus
With European markets falling over 6% during Monday’s trade(marking a 20%+ drop since last June) and Wall Street set to fall sharply on Tuesday, its easy to feel a sense of panic right now. Are we in for 1987 all over again?
Let me tell you what Shelby Cullom Davis did on that infamous day “Black Monday” in 1987. Davis , one of the greatest investors of all time, achieved 20% plus compounded share returns over multiple decades and put himself on the Forbes rich list.
On Black Monday, Shelby Davis picked up the phone & placed millions in buy orders to his broker’s trading desk. His office manager thought he had gone mad and tried to hang up Davis’s phone. But Davis grabbed the receiver back and kept on dialing(The Davis Dynasty – Rothchild)*
After the market had closed, Davis had lost $125 million* on paper. But as far as Davis was concerned, he hadn’t lost anything. He had bought many stocks at big discounts to what he knew was their real value. Why did other investors sell to Davis? Because they panicked. Over time Davis was proven right as Wall Street rallied following its Black Monday correction.
There’s a well known saying that when panics occur in the stockmarket, wealth flows from weak hands to strong hands.
So whatever happens on Tuesday or beyond, remember what Shelby Cullom Davis did. The worst thing you can do during a panic is to sell. And if you have the nerve and conviction, its probably smarter to buy stocks on discount.
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
You may enjoy these topics as well
Comments
Hi DNHH, probably not Sarin that much but definately Celestial after your explanation on the convertable bonds.
Thanks for coming. Best Regards.
[...] Apparently,Singapore is not too far off the trading range as compared to some other countries.India is severely oversold by this standard. I am thoroughly surprised by this. This might present a good opportunity for you country timers out there. Have to say i seldom do that now. I find that extra alpha for the increase in beta to be something that requires more timing effort from me. Unless I feel bored, I don’t really want to time that. Read more… [...]
I hope I got nothing to do with ur purchase of Sarin and Celestial. Anyway good luck.