I agree. Those who sat on the sideline waiting for market to recover often end up joining the bull market at the peak. Forget about timing the market. Just continue to buy good stocks cheap and u will be fine.
Removing the issue of competent and alpha performance.....
There are still two truism.....
1...... That in an environment of low interest rates below inflation......to borrow is smart, to save not so smart......to borrow and invest is the smartest.
2........ That the only free lunch in town is diversification.....that is why CFA and universities teaches you to diversify. Problem is, too much diversification, you will never be rich as Bill Gates.
Add every thing together, stock discovery in growing companies is still the smarter choice.
If you are consistently smarter than mart, and can reliably predict mkt tops and bottoms...then go ahead and be a market timer or trader. Otherwise, just stay invested for the long term and ride or ignore all the inevitable mkt wild up and down swings. The only right method is the one that makes you happy, $$$ and harm nobody...
Good luck to all investors, traders, timers, hold forever...
Smart investor........In that case, go back to step one, Removing the issue of competent and alpha performance.....
There are still two truism.....
1...... That in an environment of low interest rates below inflation......to borrow is smart, to save not so smart......to borrow and invest is the smartest.
Think about it.....removing the issue of competent and alpha performance....the current world and Malaysia monetary policy suggest that the smarter one is the one stays invested at all times.......that every bear market is an opportunity to buy shares.........on one principal assumption..........that the investor has unlimited capacity to borrow.
Since no one has unlimited capacity to borrow we adjust the strategy accordingly. We have to sacrifice infinite earnings for reasonable earnings.
when the idea of having QE ( practically printing money in large amount..your money become small in real value, when banks start practicing zirp policy means your money stop generating more money,, worst still negative interest ..forcing you to do something to your money and not just holding it...what does that lead too...have to lock it somewhere that would create increasing value..invest in good stocks.and different assets class...not cash ..not cash .. just my one sen common sense kikiki
What are the symptoms associated with each hour of the Investment Cycle Clock? 1 o'clock ( or 2 o'clock ) = anxiety What is the time on the Investment Cycle Clock now? 1 o'clock ( or 2 o'clock ) = anxiety
Anyone can always find a reason to disprove that 'stock always go up'. And at the end of the day, everyone in this forum is buying individual stocks not buying the whole stock market. A broader market in Japan hasn't gone up doesnt mean you can't make money in individual stocks.
NOT SURE how to go about - Is there ever a sure thing in market? There are only probability, no certainty.
yes stock always go up, but let said you buy a stock at 1.0 in this market condition, it drop to 80 cent before start rebound ... can you stand to see a paper loss of 20 cent ?
I think my time is better spent on understanding the companies im interested to buy and determine their value than studying investment cycle clock. That doesnt mean im ignorance about the market sentiment, we still need to roughly know if investors are aggressive or cautious, optimistic or pessimistic, greedy or fear etc. And going by your sentiment, you are definitely very cautious and pessimistic; i've experienced that for the past 2-3 years, now im on the opposite sentiment
like you said it is just a paper loss not a permanent loss unless you are forced to sell it. As long the business behind remain intact, nothing will change. I bought Aeoncredit at $15.80, now it is $11. But I cannot find any other financial companies that can compound net asset faster than Aeoncredit besides Public Bank, so I am happy to hold it. The only time that i would sell and realized a loss is when I found another similar quality stock that has a cheaper price in relation to it's value. And that's another reason im looking at SGX companies
JT Yeo, I am finding super bargains on SGX and HKEX now which are in deep bear territory. Perhaps we can exchange ideas through a private forum. There are other like minded international investors too. Please leave me your email address if you re interested.
investing like trading is a win some lose some game, But investors unlike traders need only to be lucky enough to be able to pick just one superstar winner, or at least 2 winners out of 10 to 15 names and hold for many years... Anyway, to all all traders, timers, investors, hold forever...good luck!
I always treat the share markets as banks, counters that have good PE, steady earning records, comfortable NTA with good steady dividend yield above bank rates ( that I feel the peacefulness even widen markets crash),
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
N00b
380 posts
Posted by N00b > 2016-02-10 09:32 | Report Abuse
"Stocks always go up..."
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