Saturday, 16 November 2013

What can you do in today's market

Let's face it, global market is no longer as cheap as it used to be. Dow Jones and S&P500 has continued to maintain at new high, Asia markets also soared the last week after reacting positively to Yellen led Fed Reserve. Traders like this period of market volatility because this is where they make money from short term trading. However, many of us will not have the time to watch our counters every minute or second. So what do you do now as investors?

Be sensitive to global fundamental. Just a few days ago, CISCO, the US Giant networking company forecast a steep drop in revenue and weaken orders from emerging markets. There are couple of networking equipment stocks listed in SGX, is this a good time now to invest in those, given the warnings from CISCO who is the leader of the pack.

Looking at numbers. Most of the people wants to be or learn from Warren Buffett, but the fact is that there is only 1 Warren and no one can think like him. Are you able to read and assess in-depth of the management team like him, would you buy the shares like his recent purchase of IBM and Davita, which based on TA is high. We are simple man with a day job so instead of trying to analyse with so many things, maybe we should keep it simple by looking at assets such as Price-to-book ratio. Walter Schloss was a legendary investors with proven results, he kept his method simple and there is no need to talk to and try to understand management. More about this man can be found here.

Patience. If you cant find anything to buy in the current market, then dont buy. Some of us uses TA to time our entry and exit, so if there is nothing at the moment, then wait.


Money Honey said...

Would you reckon it's still okay to stay invested in the stock market as timing the market is never easy? To avoid losing sleep perhaps keeping the invested amount as a small fraction of the total investible funds, is this idea feasible?

Oldman said...

Yes, agree that it's not easy to time market, has to be selective now. Keeps some chips for coming correction.