A week ago I said the time is ripe for value hunting in the sharemarket but it can be frustrating for many enduring the whiplash like roller coaster ride in the market. What can we say when there are plenty of mess yet to be cleaned up.
For long-term investors bear market is the best time to pick stocks that provide value and good growth that otherwise would not be possible during bull time. Think like a businessman - buy low, sell high. If you think you found have found a bargain then why bother about volatility?
Well that's generally true but in today's complicated web of financial leverage and synthetic transactions, anything can happen. Just flip open the financial pages and you will see the carnage; Fannie Mae, Freddie Mac, IndyMac and back home the range of margin calls and gearings gone bad catalyzing a string of failure for the likes of Lift Capital and Opes Prime.
Many investors are sitting on their hands waiting at the sidelines while the global financial mess sorts itself out, and of course the looming global stagflation which is a bigger mess. I say this is the time that we should get back to the basics and do some strong research picking the most fundamentally sound stocks.
It is a matter of survival of the fittest and the time we are in now is just part of the economic evolutionary process of weeding out the weak ones. It is just like.... life.
For long-term investors bear market is the best time to pick stocks that provide value and good growth that otherwise would not be possible during bull time. Think like a businessman - buy low, sell high. If you think you found have found a bargain then why bother about volatility?
Well that's generally true but in today's complicated web of financial leverage and synthetic transactions, anything can happen. Just flip open the financial pages and you will see the carnage; Fannie Mae, Freddie Mac, IndyMac and back home the range of margin calls and gearings gone bad catalyzing a string of failure for the likes of Lift Capital and Opes Prime.
Many investors are sitting on their hands waiting at the sidelines while the global financial mess sorts itself out, and of course the looming global stagflation which is a bigger mess. I say this is the time that we should get back to the basics and do some strong research picking the most fundamentally sound stocks.
It is a matter of survival of the fittest and the time we are in now is just part of the economic evolutionary process of weeding out the weak ones. It is just like.... life.
No comments:
Post a Comment