Tuesday, September 04, 2007

Investing after a market correction

Dear Mr Tan,

Your posting on your blog 2 weeks ago just before the market plunged to below STI 3000 mentioned that the index may not drop to 2700. You also mentioned that Warren Buffet had started nibbling on some stocks.

I have never bought stocks during a correction but did so only because I wanted to emulate your disciplined approach to investments. I took courage and bought some blue chips at good prices. I am an investor and not a trader.

The market has somewhat recovered, although volume is rather thin. In your opinion, would you continue to buy stocks at this point or would you wait for the market to correct further? I notice corrections of 20% of the STI occur infrequently.

REPLY:

You did well. Congratulations.

I think that it is all right to continue accumulating from here. I shall be doing it myself. Let us hope that we are both right!

4 comments:

  1. It is difficult to time the market.
    As long as you know what you are investing, the needs for investing and the horizon you have for the fund that you are investing, it is okay to accumulate gradually.
    I'm also identifying and accumulating some good shares, I hope all of us are right too.

    ReplyDelete
  2. Hi All,

    It's difficult to time the market. I myself has also bought some shares in the market. As long as we pick stocks with good fundamentals and strong management, it would be fine in the long run. We are doing investing on fundamental stocks and not trading stocks and speculate.

    I have been holding Swissco, FrasersCT and MSCI India ETF. I would say ETF is the way to go. How about the rest?


    Regards
    Loh Hon Chun

    ReplyDelete
  3. ETFs are the best. You are buying the whole market.

    ReplyDelete
  4. Call me timid or whatever. I just don't want to put my money in the hot hot China market.

    Regards
    Loh Hon Chun

    ReplyDelete