I asked my stock broker for the top 20 blue chips in Singapore, showing the fall from the recent market highs and the dividend yield. The results are shown here. I shall be investing in the blue chips with high dividend yields, especially if they have shown a drop of more than 20% from the recent high. It should give good value for the long term investor.
Someone asked for my views if this is a good time to invest in the market. My answer is - "yes". For a long term investor, a good time is when the market has corrected by 20% or more. The next question is - "will the market go down further?". The answer is "maybe - but we will never know when is the bottom".
ReplyDeleteI also have faith in Warren Buffett. He said that his companies are showing good results - except for those involved in the housing sector. I believe that he is a man of integrity and he speaks the truth. So, I expect that the US economy will start to turn around and that the earnings will be good.
Anyway, this is just a personal opinion. I decided to put some of my own cash into the stock market now.
Dear Mr Tan
ReplyDeleteThanks for sharing. Just a few comments for your consideration:
a)If I'm not mistaken, all the 20 stocks except Dairy Farm are part of STI Index of constituent companies.
b)Might be interesting to also ask stockbroker how much the STI Index declined over the same period.
To compare volatility of individual stocks versus buying the STI ETF.
c)Just for the sake of exchanging ideas on investment philosophy.
I share your same belief in the usefulness of STI ETF as an investment vehicle. We only differ I think on matters of market timing.
IMHO, everybody is a market timer.
Value investors like Warren Buffet TIME their purchase based upon their assessment of value. They also TIME their sales based upon their assessment of value.
Technical analysts like myself based our timing decisions on a study of the price behaviour to arrive at an assessment of what is a "good" value.
We don't believe we have the skills and knowledge to understand the annual report. Or that the annual report can be trusted to any great extent.
That is why I like the STI ETF. I let the experts decide what are the good companies. I just need to focus on my area of expertise ... timing.
Mr. Tan, are you preparing your readers with the impending financial mayhem that is unfolding right before our very eyes? This is going to be a crisis of monumental proportions.
ReplyDeleteThe Fed printed 15 trillion dollars in the last 3 years. The whole financial system is extremely precarious now. No financial instrument is safe, regardless of how long term one intends to be.
Confidence is key.
ReplyDeleteBe it 1000 trillion or 1 trillion.
The quantity is not the worry but the lack of confidence in OCBC, DBS,and the MAS or the FED is.
The piece of plastic currency that is in your pocket is just a notional value that everyone trust. The trust that if you give me $2, I trust that the system ( not you ) will redeem that $2 wherever I use it.
I could go to Japan and change it for Yen, provided the Japanese money changer has the trust that he can get an equivalent value elsewhere.
The quantity that is in circulation is huge, the promises that the FED, the ECB says they will honour the debt is the key.
I shouldnt worry too much about it.
You and I will need our iPads and internet, food, water and clothes.
business will continue and they will need to be paid for with money. Keppel Corporation will continue to build rigs on order and they too will be paid.
As a shareholder, you will recieve part of that payment ( less costs)
Any change that you think will happen will take a long time to take effect. Very long... perhaps another 50 or 100 years.
Meanwhile, invest in stocks. It will be worse if you leave all your cash under your bed.
If you feel that it will all come tumbling down in the next 12 months, then please share with us what have you done to prepare for it. Move to New Zealand and live in the forests? plant your own vegetables and milk your own cow?
or maybe just sit and look at all 100 kilos of gold bars that you bought since 2008?
UK printing 75 billion pounds to shore up economy. Protest building up on Wall Street. Huge flood destroyed crops major agricultural countries. The writing's on the wall.
ReplyDeleteDont worry too much, have confidence in your govt to save you and solve your problem. YOu will be fine.
Those who wants to know, will find out. Those who dont want to know, talk until cows come home also no use.
I am just a doomsday crackpot that should be lock in IMH. Sorry for wasting your time. Continue living your nice comfortable life when money come out from ATM machines, water flows freely from the tap and food is always available from your NTUC supermarket. The govt will make sure this continue perpetually.
We have opinions from people who seem to understand the perils.. .no, make that a certainty: that the world will come to a horrible end.
ReplyDeleteYet, no offer to help.
No sharing of what to do.
Just spell out DOOM and all will PERISH for sure.
History has shown that one person did try and succeded: Noah.
But he has done his deed.
So, I find it very unhelpful and adds to the negativity.
If there is no hope, then all this reminder of doom is not going to change anything, and we might as well have a great time with Mr Tan here and enjoy his sharing, sincerity and friendship.
http://www.youtube.com/watch?v=6UGDTtqklSo&feature=player_embedded
ReplyDeleteI also go for dividend-paying blue chips. ^^
ReplyDelete