Dear readers, after a massive sell-off, regional and Singapore stocks markets have regained some grounds. This may have prompted some investors to buy some stocks at discounted prices right now. Thinking that this is a good opportunity to do so.
I would think that now the markets are still not as cheap and investors entering the stocks markets right now may:
- experience some short-term gain but with the overall longer-term narrative as catching a falling knife
- will gain more profits by entering at a much lower entry point from now.
I mean how could stocks markets be cheap when the Straits Times Index is still rather high at 2,832? How could stocks markets be cheap when there are more and more uncertainties being factored in?
When stocks markets head south, we will expect the markets not to go down every trading day. There should be some ups and some downs but the general trend going forward will be south.
I advise investors not to waste your warchest monies by investing in the stocks markets now. A more reasonable reference point to take note of is when the stocks market head down to the 2,500 to 2,600 range which I believe will be tested soon.
And if there is a confluence of factors, this southing may eventually lead to the stocks markets crisis which many are expecting after a decade.
Yes, I know some investors now have rather “itchy” hands to buy some good stocks now. As an investor of many years, I know that. But a true and profitable investor will not fall prey to emotions but will stick to his or her own rules.
For example, I have shared with readers many months before that the Singapore stocks markets will head south to 2,800 level in the coming months which it does now. And hence I have not been putting new capital into the stocks markets but am amassing an investment “warchest”.
And right now, my target for the STI is 2,500 to 2,600. Once this target is hit, I will assess whether this is a good level to invest in some stocks tranche by tranche. But I will not likely to do so as:
The most profit to make from the stocks markets is when there is lots of fear (which there is little right now) and when everyone is selling and selling. But you are buying lots and lots at the bottoms.
Hence, please forget what your friend who could be influencing you to buy stocks right now is saying. The bottom is yet to come.
Markets go up and down in cycles. This is only natural. Please be patient and let us make lots of monies together when the markets go absolutely south okay?