Saturday, March 10, 2007

Is it time to re-invest in the market?

The market rebound is stronger than I expected.

Is it time to re-invest in the market?

For my personal investments, I have decided to wait for another week or two. I still feel that the stock prices are too high. It is better to invest at a lower price. In the meantime, I am happy to keep my new money in the money market fund and earn 3% to 3.5%.

Earlier, I missed the chance to sell my existing portfolio. I may take this opportunity to sell some of the portfolio now (as the prices have partially recovered).

There is a risk that I may miss this buying opportunity. But, I have decided that it does not matter.

However, for young people investing a small sum each month, it is all right to continue to make the regular investment as you are applying the averaging principle. The average cost of your investment will depend on the prices over a period of time.
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3 comments:

Anonymous said...

Dear Mr Tan,

Please share with us the secret of your disciplined approach to stock investment. Most of us do not sell when the market is high(greed) and start selling when the market nose dives.

You are in control and do not follow the herd instinct. How do you exercise self control?

March 10, 2007 9:26 AM
Tan Kin Lian said...

First, I must confess that I am not good at market timing.

I follow some indicator to tell me if the market is too high, too low or within acceptable range.

Right now, I think that the market is too high.

When the ST Index was at 1,600, I held the view that it was too low.

March 11, 2007 5:24 PM
Anonymous said...

for money market, would switching to and fro into other NTUC funds incur a lot of service fees?

Isabel Ling

March 11, 2007 7:00 PM

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