Note 3: Bumpy ride

Dear Internet

It’s been a wild ride over the past few days for many investors since the stock market has went on quite a roller coaster.
A few of my friends were discussing on it either on Facebook or thru chats with me. Some of their portfolios were badly affected and some of them have less than average decline. While the cause of the correction is mainly due to the potential rate hike, as well as the belief that the market is overvalued, you can’t deny that the world economic is going on quite nicely. I personally believe that there could be a short rebound once the economic data comes off nicely again, but do not judge me on this.
This correction is also a good chance for people to know their reaction in times of such mini crisis. If you find yourself sweating and panicking, you might need to think hard on how much do you want to put into the stock market.
My advice to the readers is simple. If you are a broad based investor using low cost ETF or funds with a 20 year horizon, do continue to be invested. However, if you are someone who plays the market like I do, it’s a good time for some reflection on your strategy and belief. There might be some buying opportunities as well during this period.
Good luck!

Comments

Post a Comment

Popular posts from this blog

Note 17: Oct Update

Note 17 – Oct Update Oct 2018 hasn’t been the best of month for my investment. In fact, it was stomach churning to a certain extent. The total portfolio further declined by -3.6% MOM, and a -6.4% YTD. The main reason was the further escalation of the trade war, decline in the tech stocks, coupled with decline in the China market. As I am writing, it is already in the mid of Nov and the market has already recovered per se. These are the ups and downs of an investor, and as they say, live by the sword, die by the sword. The portfolio declined was mainly exacerbated by the huge decline in my Singapore portfolio (which consist of my cash investment and my SRS). I shall not go into individual stocks, but the STI “blue chips” don’t seem so royal at this stage. Current cash at the moment stands at 15%. Singapore portfolio The Singapore fund is still on the negative, but this time is the rare time, it actually did better than the benchmark (not really that of a consolation as well)...
Read more

Note 14: August Update

In the month of August, the portfolio suffers a slight decline, but with all the expected issues around trade taking place. I believe that this is to be expected. There seems to be more buying opportunities but I won’t be dipping my toes unless there’s a really compelling reasons and an overly negative sentiments. I believe most investors are also unsure of what’s going to happen as well. My biggest concern is the fear that US market will hit the bear market before we hit our bulls. That will also means we might be facing lacklustre performance for more than 10 years. Singapore market Singapore market has suffered a slight decline, mainly with some of the declines coming from Singtel and properties related shars. My Singapore portfolio is not a 100% value focus fund and it has unfortunately decline more than the index. As a result, I am of the idea that I will need to sell heavily before I embark on a value approach. It’s in a 15% cash situation as well, I think that is a comfortable ...
Read more

Note 1: Start of my journey towards financial independence

Image
Dear internet Today, I am officially recording my journey towards financial independence. I am 38 years old this year and I plan to achieve financial independence by the age of 55 years old. During my youth and young working life, I was heavily influenced by several of my seniors who had achieved some form of financial freedom at an age much earlier than their peer. As such, I wish to chart my own path, just like them. I currently live in a public housing, and work as a minion in a MNC. I believe that the route to financial independence or financial freedom revolves around a few key behaviour Spending less than you earn A disciplined process in investing   Being open minded   This blog will record my various trades, milestones of my networth, opinion on equities and politics and other matters regarding financial independence. This blog IS NOT , A showcase of my net worth,  A forum to share my thoughts on religion or politics  A blog for a...
Read more