Another big plunge

Today the Singapore market just gone through another big plunge. All stock, with fundamental or just speculative, all gone down. In the bull market, everybody wants to buy. In the downturn, everybody wants to cut loss.

I trimmed my position in May, preparing for the market correction. Who knows after I sell out, the counter I once held shoot up more than 50%. That's the power of long term investing. You can never time the market. Just when I re-enter the market few weeks ago, the long awaiting correction is finally here.

I am sitting on paper loss now. But I am not prepare to "cut loss" at this point. Since when I bought the counter, the share isn't that expensive, so I am willing to ride out the volatility. When the next upturn comes, everybody would smile again.

Today added a small position in BH Global. The current offshore and marine cycle has another few years to run. So, this should be considered as "safe" investment. Two more themes I strongly believe are hotel&property and china consumer play. As hotel shortage would stretch till 2010 and china consumer play should be a multi year bull cycle.

Monitoring the market closely, if other even better opportunity emerged, would start a position on it. Although risk abound, focus on the earning prospect and valuation should ensure a safer ride.

If you are unit trust investor, can start planning what to buy already. Once the market stabalise, it is a good time to add some fund position also.

Never 100% vested. Save some bullet for the market correction.

Tag: singapore stock sgx stock