Monday, 6 October 2014

I bought stocks during last week's big selloff

For those who had read the CNBC news, this was the statement made by Warren Buffet last week. He did not reveal which were the companies that he had added holdings to. As per his statement below in CNBC, in his usual style, he never like to time the market and he would buy more when the stock price becomes cheaper.
Source: CNBC






In this part of Asia, we had our own problem too, just last week, huge number of protester started the 'occupy central' campaign in Hong Kong due to a reason that we are know and I shall not repeat here.
Source: CNN















Let' look at how the 2 markets, Hang Seng and STI, reacted to the events above. 
Source: Yahoo.com
 


In the month of Sept, Hang Seng has corrected of about 9%, while the STI has a minor correction of about 3.5%. Based on any of the valuation indicators, these 2 countries are consider cheap as per the report by The Telegraph. In this report, it has an interested graph which shows where the countries stand. If you have been buying STI ETF as part of your permanent portfolio, does this present an opportunity?
Telegraph














Do you have the courage to be like Warren Buffet and buy into Hang Seng and STI?

4 comments:

Felix Leong said...

Good read, I think the Hang Seng Index is pretty cheap at 11 times earnings. I bought some 2800 HK during the recent correction.
CHeers ^^

Oldman said...

Congrats, protest has slowed down and market seem to have react positively today.

David Tan said...

How do you trade Hong Kong Index in Singapore? I cannot find any index fund with iShare nor MSCI.

David

Oldman said...

Hi David, don't think there is in sgx, I might be wrong but the one which I know is in NYSE, http://www.ishares.com/us/products/239657/ishares-msci-hong-kong-etf. They might be others around.