Dear Mr Tan,
With regards to the recent market turmoil, the market has reacted strongly to the easing of QE by 2014 and possible interest rates hike thereafter, but seems to have forgotten that this easing shows the FED's confident in the recovery of the US economy.
When the selling is done, people may realized that they have over-reacted and bargain hunting may kick in.
For now, the market will continue its free fall due to the outflow of institutional funds to the States and the herd selling mentality by the retail investors.
REPLY
Yes. For the long term investor, the selling gives a good buying opportunity, But the selling may last a few months.
With regards to the recent market turmoil, the market has reacted strongly to the easing of QE by 2014 and possible interest rates hike thereafter, but seems to have forgotten that this easing shows the FED's confident in the recovery of the US economy.
When the selling is done, people may realized that they have over-reacted and bargain hunting may kick in.
For now, the market will continue its free fall due to the outflow of institutional funds to the States and the herd selling mentality by the retail investors.
REPLY
Yes. For the long term investor, the selling gives a good buying opportunity, But the selling may last a few months.
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