Investment Feeling on 25-Feb-11

After storm, there always will be a sunshine day came through. Today is a sign of relief & fruitful day as STI index showing strong rebound from the previous day dipping, and finally close at 3025 pts which stayed above psychological level (refer to the chart as below):

But next week will be a crucial week for STI index to show the stability for it to stay strong above the level if the situation at Libya or other North Africa or Middle East countries can not be resolved. But in the view of next few months, the possibility of last bull run is likely to be occured, and subsequently lead to another round of finanical crisis. Current oil price has been staying at US$98 with a possibility to hike above US$100 level, this may give a hurdle for some countries to counter the inflation rate, the possible policies to counter the inflation rate may lead to higher interest rate, increase bank reserves and even affect the countries GDP to defer the growth of economy.

The recent correction has been giving a hit to overall equity markets, but at the same time, it also shaken the weaken holders for retail investors in order to reform the foundation before rising to the next level. Fortunately, precious metals, e.g. Silver or Gold, have shown outperforming than stock markets with thanks to high inflation & countries unrest. As s result, it shows the importance to diversify your investment portfolio into different aspects instead of putting all your eggs into a same basket. Currently, I've only putting 8% into the Silver investment, and majority portion into stock markets, which may not be healthy for long term investment. I've planned to reorganise my investment portfolio after this last round of bull run into moderate risk of financial tools, e.g. UK Endowment Plan (return yield - 4% to 8%), Land Banking, French Wine Investment or Property Investment.

Investment Feeling on 24-Feb-11

D-day! In the Morning, it still looked ranging & hovering between psychological support level at 3000 pts. Out of sudden, STI index slipped further for another 29 pts & close at 2973 pts. It's like a freefall of dark rain from the sky. Now it's really the moment for me to think deliberately before any decision made, either sold everything tomorrow before it's too late or expect technical rebound soon either on tomorrow or next week. For better understanding for STI index trend chart, please refer as below:

The psychology & emotion control is now bothering me to clear the hands or hold on it. At the moment, I may plan to realize some profits first before going to throw other losses stocks. I hope to secure my capital first before everything though I may suffer some losses or may regret if STI index is really rebound soon. But at the point of time, as a human, am I rational enough for the decision I'm going to make? Hope it works...

After all this, I've chat with my buddy regarding his current investment feeling. He just told me to assess my risk level whether I can tolerate the risk of dropping or intention to retain the capital. He shared after the previous 2 major corrections, which are subprime crisis & Europe crisis that are mainly related to the credit & debts by banks & countries. But this time round is actually the countries unrest & chaos and cause the oil price hiking & inflation concerns. So will it affect the fundamental of economy? Sure it will, but it's may only restricted to certain level but not the fundamental for overall economy to be grown.

So at last but not least, I would rather sit on tight to go thru this round of storm as I've realised that I'm still enjoying slim profit after today storm. What a relief! Stay tuned for tomorrow another roller coaster ride as I believe --> 否极泰来, 物极必反

Investment Feeling on 23-Feb-11

Yesterday (22-Feb-11) was really a bloody hell day for stock market. Almost all the profits were nearly wiped off due to major correction caused by countries riots & oil price hiking again. STI index was testing 3000 pts supporting level before confirm for reversing major trend line from uptrend to downtrend as it has crossed below 200MA. As Dennis commented, if STI index continuously stay below 3000 pts or 200MA for 5 days, it is likely to confirm that the major uptrend has been reversed & bear market has been kick-in.

As for today (23-Feb-11), STI index is still hovering around 3000 pts supporting level, likely to show slightly technical rebound from lowest level (2988 pts) & trying to stay above psychological support level.

So for me as learning to be a market investor, what have I done? I have quickly made a decision to reshuffle some of my stock portfolio, which are Tiong Woon (as it has crossed below 200MA & with poor financial result announced which shaken its fundamental) & Tuan Sing (due to wrong decision of chasing high price) into fundamental stronger penny, e.g CES & Viking. At least now I feel more secure & willing to hold long to stay tuned for next possible rebound. I hope I have made a sounds decision in order to cover my losses.

Investment Feeling on 21-Feb-11

Today again, the North Africa & Middle East tensions have caused Asia stocks tumble, including STI index. Not only that, latest move from China on tightening policy in the form of banks' required reserves increase also cause the overall equity market shaded under a dark cloud. Even though after the G20 meeting, the policymakers reached a fudged on how to measure imbalances in global economy showed minimum impact to the market. Though recent noises (e.g. countries chaos or interest rates hiking etc) will remain bothering & creating unrest in equity market, but in a bigger picture, I'm still remain optimistic for the last rally in this rabbit year, in fact, I have just added on my position in some undervalued stocks during recent dips. Meanwhile, fortunately spreading unrest & uncertainty in North Africa & Middle East have continued to push commodities & precious metals higher. Silver price has crossed US$33+ level.. Stay tuned

Investment Feeling on 18-Feb-2011 (Part 2)

Today STI closed at 3087 pts, which is only 0.13% small gain, quite disappointing. But my overall stock portfolio also retract from big profit on this morning into small gain after the announcement for budget 2011. Frankly say I'm not bother much regarding this budget as I'm only Sg PR and I wont be benefit from it. But it might affect the overall stock investment atmosphere which likely will attract those retail investors go into stock market again if they satisfy & feel optimistic for this year prospect. Hopefully by next week, STI will digest the effect from this budget and continue to gear up in order to reach new peak this year! 

Investment Feeling on 18-Feb-2011 (Part 1)

Today is the Sg budget announcement day, so as expected, most of the stocks are showing green green again, including mine. Silver price also rise to above US$31 again, recovering from recent dip & correction. Those whom i share with regarding the potential rise of silver in long term view hope they have heard my voice & collect some during the recent dip. Looks like STI index can close with positive on today with starting another possible of uptrend after the recent chaos & today budget announcement? Possible if STI index was being pushed down by invisible hands before it hikes to a new peak? Let us wait & see.

Investment feeling on 17-Feb-2011

Today STI index slightly fall for 10+pts, but my portfolio only -$50. Seems not bad. Some stocks (e.g viking, koh bros, fjben) declare good financial result do not reflect to the actual price changes, indeed they're stagnant or slipping, even though they are giving dividend. Some says most of fund managers have diverted the fund from emerging markets into US or china markets. But as long as overall market trend still remain above 200MA at 3040pts, I'm not quite bother abt the noise. Just hope to grab some stocks (e.g auric & fjben) in discount at the moment. Today dennis commented a very good mindset is if u feel fearful of losing ur money in investment, then the universe will do tat for u. So as I think, I always believe my investment will always make money, but provided I hv assess the downside "what if I'm wrong". This is very important. Happy investing