Saturday, March 22, 2008

When is a good time to enter the market?

Dear Mr. Tan,
I am thinking of investing in the STI ETF. As a beginner to investment, how would I gauge when is a good time to enter the market?

REPLY
Nobody knows when is a good time.

My guess is that this is now a good time, as the market has corrected and the financial crisis is likely to stablise now. If you are a long term investor, it should be quite safe to invest now.

Wish you all the best.

4 comments:

Anonymous said...

Is it a good time to invest in the commodities market?

Zzz said...

If don't dare to put lump sum investment into STI ETF now, can take a look at DBS shenton Thrift, starting amt is only $500. ER (0.93%) is relatively low compared to other fund.

Anonymous said...

I suggest you put in money in fixed deposit. Now is not a good time to invest. The STI will continue to drop and the ETF will follow suit too. Going forward there will be more volatility and downside because of the foolish move for the Federal Reserve to get involved. In the history of US, no Fed Reserve ever become lender of last resort (and so indiscriminately too) to bail out mistakes by commercial entities. They will pay dearly for this decision.

The good time will be in about 2 years time, where the bottom is reach and the recovery can actually start. Follow the trend, if it is down, get out. Don't be in a hurry to lose your money.

Of course, if you are those who are rich enough, got holding power and don't mind putting in your hard-earn cash and sitting on paper losses for the next two years, you can invest at will. After all, it's your money.


R.

Anonymous said...

Seven of the 10 S&P 500 industry groups fell following the unexpected 1.7% DECLINE IN ORDERS FOR GOODS MEANT TO LAST SEVERAL YEARS in February (2008).

Source:
http://www.bloomberg.com/apps/news?pid=20601087&sid=avTlCXlXFlPc&refer=home

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