I guess it is only fair that after warning people of the impending crash and now that the crash happened as predicted, I should also say that the time has come to start thinking of investing in the stock market.
Long term investment hor... and don't borrow money to buy.
Of all the disagreement we had..... at least the "Think Long Term investment" part I could fully agree with you.
one question, are we at the bottom already?
Not all of us are savvy in investing. I for one is totally lost.
Originally posted by TCH05:one question, are we at the bottom already?
So what is the crash ? I'm seriously very confused. Somebody said crash but but but I don't see the economy crumbling, I don't see companies winding up, I don't see people losing their Jobs and marbles. Looking at the charts I see a major correction but crash ?!
The market can either go up or down, so if I ask my dog the same question about the stock market, I think she will have a 50% chance of getting it right instantly and 100% chance of getting it right eventually
the stock markets were saved by the intervention of the Feds so it wasnt so bad, it even recovered last week.. but not even the Feds can stop the inevitable impending recession.. so nows a good time to read books on stocks... once the recession is over the stock markets will be at its lowest and i'll be ready
TS - are you sure we are a at or near the bottom already?
Well... if it can be predicted, there wouldn't be lost in investment liao... Don't you agree?
Andrew, so are you recommending that NOW is the time to buy or are you just starting a thread to tell people that you have again "predicted" that stock market will recover, in let say, XX months time?
Suppose if now is the time to buy, which stocks would you recommend?
Index Value:----> 3,077.51
Trade Time:----> 1:00PM ETChange:----> Up 69.71 (2.32%)
By the way,
and
mean you start considering and do not expect any quick returns with a time frame of a few years.
It is not like what that threat issuing idiot said, 'strongly recommend' to buy.
so? wat to buy?
Market has a way of proving people wrong - when you think it is low enough, it will go lower.
The only good time to buy shares is when you actually buy the shares.
If you're in for the long-term, buy the shares at a price you deem is appropriate, and sit in for the rough ride.
If you are a long term investor, you do not time the market.
You simply look for a good business, buy at a good price and stay invested as long as the business remains sound.
It is ridiculous to say that you should hold on to your stocks when you see an impending financial crisis like the one that unfolded recently. This is even more so when the market was at the highs.
You cannot in the name of 'long term investment' behave if not a stupid manner then a careless and irresponsible manner.
Now that the prices has come down it is time to consider buying stocks again. What you need to do is to study which blue chip has come down to decent valuations. You do not need to time the bootom, like you said, but there are seasons when you do not even consider buying stocks and there are times when you consider buying stocks.
When the market was at the highs and valuations was not attractive, you would not consider buying even though you might want to hold on to your positions, those you had bought earlier.
When the situation is dire like recently (from mid of last year), you do not even want to hold on to your positions. You clear everything and wait.
Wait for what? Wait for the market to down and start looking at the stocks that you want to buy, those that are blue chips and with decent valuations.
The US has probably entered into recession and the markets will be very volatile. This would be a good time to pick up some good buys at prices you would not be able to get except in a recessionary period.
When your time-frame is in terms of years, as a long term investor's would be, there is no hurry. Take your time, consider the stocks you would like in your portfolio, and buy when the market crashes.
In summary, do not buy (but hold) when the market is bullish, sell when the economy is turning down (but markets have not reacted), wait after selling, evavluate what to buy (now), then buy when the market crashes and wait a couple of years or more until the next cycle.
you have yet to witness the ultimate crash that will signal the arrival of the recession. be prepared for the black monday in september 2009.
So what APKY is trying to say is that you should start a business, and when the time is difficult, sell and fold it. Wait for another day.
How is starting a business the same as buying and selling stocks and shares?
In both instances, you own the business. If you are an investor, you own the business. However, if you treat stocks/shares as trading items, then we are on different boats. Then there is no need to discuss anymore.
Should the business close down just because there is a recession? No.
Should investors sell their shares when they see a downturn in the business? Yes.
Are minority shares holders the same as majority share holders? No?
Just because there are some similarities between business owners and investors, does it mean that they are the same thing? No. Otherwise wives would the the same as prostitutes because there are some similarities, like they are bith women, for example.
worst example ever.
Anyway, the resolution of this matter lies in the function of the investor. If he's a long term investor buying into a company via shares because he believes in the future of the company, there is no difference in his role and that of a man who starts a business.
Andrew however is referring to the investor(or speculator) who buys shares with the intention of selling them for a profit. I find it highly amusing because Andrew has always flamed speculators. Anyway, speculators obviously hold no loyalty to the company and will dump shares high to buy back low.
Still, more than a few people have lost their shirt on such strategies based on market timing. Andrew, you're still living in HDB right?