Faithful readers of my blog would probably have come to realise that I've been very quiet on the investing front recently - I have yet to execute a single trade for 2008.
At times, I must admit the current market has managed to strike fear and disheartenment into me. Thankfully, I usually manage to keep my emotions in check because of the logical and systematic method of investing that I have in place.
As such, the key reason for my inactivity is based on my rational conclusion that it is not yet time to bargain hunt.
Personally, I would prefer to wait until the next set of corporate results in May.
Reason being, 2008 has started quite badly for most companies, having to deal with a myriad of problems such as the global financial crisis, poor sentiment in property and retail markets, rising inflation in oil, metals, food products (key raw materials).
As such, I expect that most companies will register poorer-than-expected results, which will lead to many earnings downgrades.
For now, I've set my price alert for all the stocks on my watchlist to 50% of NAV, and would only seriously consider examining a stock if it hits that alert.
I will re-consider the price alerts only after the next set of results are in.
Disclaimer: The above post is purely my opinion, and is not an inducement to buy or sell.
Friday, March 28, 2008
My personal view on the market.
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1 comments:
this post is not directed at anybody.
but yes, a lot of us young ppl have never seen a bear market b4. last 5 years have been just non-stop bull. so when we see one bear mkt, we just don't know what to do. a lot of the other supposedly and self-proclaimed value investing blogs have also gone quiet.....which is funny...cos isin't this the time to take action? isin't this the opportune moment?
during such times of volatility is when we need more active postings from value investors regarding actions to be taken! this is the time when readers will be looking to bloggers for advice and opinions, this is the time when their opinions will matter, not when the mkt is doing well!
this is the true test of a long term value investor. whether he can withstand the bear mkt and noises and not just proclaim himself as a long term value investor during a prolonged bull mkt and go quiet during a bear mkt. everybody is a hero in a bull mkt.
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