In The Straits Times and The Business Times today, there are at least three articles which mentioned "sell in May and go away" and whether it holds any water. Has anyone sold a large part or all of their investments in the last few trading sessions?
Well, today, global stock markets retreated as the Greeks and the French elected new leaders into government. They are sick of austerity measures and they spoke with their votes! European debt story is still very much the key sentiment driver for global stock markets, it would seem.
Asian markets and the euro slumped on Monday after voters in France and Greece voted out their ruling parties in a backlash against austerity measures aimed at battling the eurozone crisis. Read article here: CNA.
I am not an economist. I am not a political scientist. Some issues are definitely beyond me. So, what do I do?
Someone just told me that timing is everything and that now seems like the right time. Right time? For what? I replied that things are increasingly more volatile and I find it harder to time anything.
I am chanting the same mantra to myself and that is to stay invested for income while keeping a war chest ready. This is the only strategy I know which would work either way.
I know that the majority of my portfolio which is in S-REITs is actually doing better now than a few months ago. My more recent investments are not doing as well, notably China Minzhong, SoundGlobal and Wilmar. These investments were made as the counters' share prices retreated from recent highs. Do I press the panic button? I like their businesses and I believe they would probably be around for a long time to come. I like the investment themes of agriculture and water. So, I am staying vested. I would probably add to my long positions too if TA shows me clearer signals to do so.
Don't panic. Stay clear headed. Revisit reasons for being invested in the first place. Are the reasons still valid? Are the investments still fundamentally good? If you want to buy more, what does TA tell you? Think with our heads and not our hearts. Good luck.
Related posts:
1. Sleep well at night with a plan.
2. Why do I not panic?