Monday, June 30, 2008

Is it time to invest in the stockmarket?

JUST A PERSONAL OPINION.

If you are a long term investor, it is about the right time. The global stockmarkets have corrected down by about 20 percent. It is almost one year, since the subprime crisis surfaced. Most of the bad news have been discounted. The recovery is likely to occur over the next three months to six months (just a guess). It may be earlier.

Something may happen that will trigger a recovery. By that time, the market may move up quite rapidly, and you miss miss the boat. So, as a long term investor, it may be time to start investing.
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2 comments:

SingaSoft said...

I think we could be in a critical point...

the high oil prices, as long as it does not cripple the global economy, could be a very positive thing...

In general, i think high oil prices will force us to be more energy-effecient and make alternative energy research more compelling. A number of countries have reduced their national subsidy, which is good in promoting a more effecient use of oil.

Those (countries, institutions, individuals, etc.) who benefited from this high oil prices, will eventually invest back their profits into other sectors...hence once again encourage growth...

The very key thing I think is for consumers and businesses to have confident in policy makers that inflationary pressures are controllable...If this confidence is maintained, I believe we will go through some pains now but eventually will emerge much stronger...

June 30, 2008 11:12 PM
Tan Kin Lian said...

If you invest, you should choose a low cost, diversified investment fund that invest across all sectors of the stockmarket.

This will average out the performance of the various sectors.

If you invest for many years, you will average out the good and bad years.

In past years, the average return of the stockmarket has been above 10% per annum. But, it the future, we should expect a lower return, say 6% per annum.

After deducting inflation, the return will be lower, but hopefully will be positive.

July 01, 2008 8:08 AM

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