The email address in "Contact AK: Ads and more" above will vanish from November 2018.

PRIVACY POLICY

FAKE ASSI AK71 IN HWZ.

Featured blog.

1M50 CPF millionaire in 2021!

Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teena...

Past blog posts now load week by week. The old style created a problem for some as the system would load 50 blog posts each time. Hope the new style is better. Search archives in box below.

Archives

"E-book" by AK

Second "e-book".

Another free "e-book".

4th free "e-book".

Pageviews since Dec'09

34,389,014

Financially free and Facebook free!

Recent Comments

FakeZeroCool commented on 1q 2025 passive income ocbc and alibaba: “Hi AK, thank you for sharing your thoughts. I am new here,…”
Jin_San commented on 1q 2025 passive income ocbc and alibaba: “Dear AK, I enjoyed reading your blogs and YouTube series,…”
Hongjin commented on 1q 2025 passive income ocbc and alibaba: “How do you encourage retail investors who are not equipped…”
mitchell commented on 1q 2025 passive income ocbc and alibaba: “Clct financials getting worse and worse every single year.…”
LZ commented on 1q 2025 passive income ocbc and alibaba: “What DCF do u usually used for Alibaba, AK? i'm using…”
TH commented on srs portfolio in 2024 what did i do: “Hi AK, I have hit the max tax relief of $80k. Does it still…”
HappiSnoey commented on 1q 2025 passive income ocbc and alibaba: “Hi AK, hang in there! It will all pass… ”
fisher commented on 1q 2025 passive income ocbc and alibaba: “Take good care of yourself AK and look forward to happier…”
MPC commented on 1q 2025 passive income ocbc and alibaba: “Hi AK,Previously you mentioned that you may buy ireit at…”
Ss commented on 1q 2025 passive income ocbc and alibaba: “Dear Ak, Thank you for the post, truly appreciate it. Your…”
tzl commented on 1q 2025 passive income ocbc and alibaba: “Made a shopping list waiting to buy various stocks! Pls…”
Shaun commented on sold alibaba for 51 gain: “Hi Ak, I understand you are bullish on Wilmar given how…”
Shaun commented on sold alibaba for 51 gain: “Hi AKI understand you are bullish on Wilmar given how…”
Shaun commented on sold alibaba for 51 gain: “Hi AKI understand you are bullish on Wilmar given how…”
SN commented on sold alibaba for 51 gain: “Hi AK, with ST Engineering up 48% YTD, will you consider…”
Yue commented on 12m53 plan for cpf in 2025: “Hi AK, can I know the reason why you don't transfer all…”

ASSI's Guest bloggers

Do not fear the selldown.

Friday, May 21, 2010

It is safe to say that there is a lot of fear in the air. Palpable? Almost. What are we to do? Well, I am sure everyone has his or her own opinion as to the best strategy in such a situation.  Maybe, I shouldn't be so sure. So, what do I think? Well, I have been sharing my thoughts in this blog and what I now think is largely the same as before.

For a stock which is clearly in a downtrend, sell into strength at resistance.  It might be a lower high but it is still a high.  We don't want to sell at a low.  Then, wait patiently for it to form a base or to rebound and form a higher low.  It would be safer to take up a long position then.

Not all stocks are in a downtrend.  For stocks of businesses with strong fundamentals with their uptrends still intact, buying at supports is still the way to go. Look to the technicals for possible negative divergence as a warning sign.  Certain stocks might be rangebound and if the businesses have strong fundamentals, buying at the support of the trading range is what I would do.

Generally, our motivations for being in the stock market would determine the strategy that we adopt.  For me, I am primarily in the stock market to secure a passive income stream.  So, I would accumulate stocks with strong fundamentals which provide high yields. Examples are AIMS AMP Capital Industrial REIT, LMIR, Saizen REIT and SPH.

I also invest in growth stocks but these are generally not known for big dividend payouts and I invest in these with a view to trade.  Examples are Golden Agriculure and Healthway Medical.  Recently, I tried my hands at CapitaMalls Asia and lost some money, if you remember.

Do I think we are having a meltdown? Are we going into another recession or even a depression? I don't think so. Informed by Jim Rogers and Marc Faber, I have talked about the next crisis being a currency crisis and we are seeing the precursors of that crisis.  For now, I believe that the stock market will be going higher in time. Fiat currencies are not going to do a disappearing act.  Governments around the world will not allow a collapse.  So, in crises, we find opportunities.

There would be some people who want to sell away all their shares now, fearing a meltdown, keep their cash and wait.  There would also be those who are keeping all their shares, believing them to be good investments, and would be buying more shares at lower prices to average down.  In both instances, I would say, look to the technicals as we want to avoid selling at the lows or buying at resistance. We should not be afraid but we should stay cautious. Good luck to us all.

Related posts:
What are investors to do in downtrend?
A correction? An opportunity.

0 comments:


Monthly Popular Blog Posts

All time ASSI most popular!

 
 
Bloggy Award