Monday, June 19, 2006

Lessons on market volatility

Three weeks ago, the FED chairman, Bernarke, made some comments about inflation in the USA. It caused the global stockmarkets to fall by 10% to 20%.

A few days ago, he made some positive comments. The global stockmarket recovered by 2% to 4%.

What are the lessons?

- the stockmarkets are volatile
- a long term investor can ignore the volatility
- the monetary authorities around the world want to have a robust stockmarket

Any conclusion? It is better to invest when the stockmarkets are down?
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2 comments:

Jack Koh said...

Oh yes, we shd invest when the market is down.

BUT how does one knows that we are now at a "down" level. It could well be mid-way through a down wave. So, it's easy to say "invest low, sell high"

Thanks.

June 21, 2006 7:22 PM
Fabin said...

One can never know when is a good or bad time to invest. But the ideal plan NTUC INCOME offered gave me an opportunity to benefit from the volatility of the market. I can also top up if I think the price is right for me.

June 25, 2006 12:52 AM

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