True enough. Follow by US market big plunge on last Friday, we saw more selling pressure on SGX today. Many sellers + margin call ensure that the price has no way to recover. Every stock got impacted, no matter big/mid/small cap. Some of the counter with good fundamental even drop more than 10%. One example is Hiap Seng, which drop more than 10%.
Those with lots of spare money can consider to buy selectively. Looks like the consesus now is it would drop further. But to catch it at the right bottom, seems like a difficult thing to do. If the valuation is not exessive, it is worthwhile to pick up a few. Of course, nobody knows what would happen tomorrow. However, I have been through these kind of correction before. I believe as long as you buy it cheap and the company/industry is growing, you would be doing alright years later.
I think I would start a model portfolio of stock and unit trust when the dust settled down. This is to test my stock picking skill and provide more food for thought.
Monday, 6 August 2007
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