Dear Mr. Tan
I read your posting where you said that a 10% correction in the Singapore stockmarket will bring the index down to 3,500 but you prefer to wait for a level of 3,300 to invest.
The index is now at 3,440. Should I wait for 3,300? Will it go lower?
REPLY
Honestly, I do not know. It is difficult to catch the bottom of the market.
If you are investing a small sum monthly, it does not matter when you enter the market as you will be averaging the cost of your investment.
If you are investing a large sum, perhaps you can break it down into three installments and invest them over the next three months? The current level has already shown a correction of more than 10%.
It seems like the drop is just the begining. There's certainly lots of bad news in the global market.
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