My quick review on 2009

Year 2009 was a meaningful year for Singapore stock market. In the first 3 months of the year, market continue to drift lower. Basically, I was not in the market at all, watching from the sideline, hoping to see the light at the end of tunnel. Nobody knows, stock market took a dramatic turn since Mar and has never look back.

I missed the chance to make some sure win money. However, like I say always, nobody can foresee the top and bottom. It might be better to wait for definite signal of turn around. Beside that, bull market would not move in straight line. Investors have many chance to get back into the game. The continuous strength of stock market surprised many people. This was supported by steady stream of good news.

Since September, I am back in the game, bought some counters that could offer further upside when economy growth returns. Despite the China stock market has gone up substantially, S-chips are still being ignored by investor. Many small cap stocks are simply not in the investor's radar. I bought into Hsu Fu Chi which turn in very good result despite weak consumer spending. The stock is no longer cheap in PE terms. This also shows market pay premium to good performing company.

The property market in 2009 surprises me and many property stocks have recovered since then. Going into 2010, I believe in what analyst said, the high end segment is going to do well when IR open. Thus, Ho Bee is my choice. It has exposure to Sentosa Cove, joint venture plan with Yanlord in China and good cost control.

Oil and exploration market also spring back to life, as oil companies increase the offshore activities. Swiber coming from the low base, having remain subdue for a whole year, finally wake up as more contracts are being awarded. The stock might trend higher as each contract announcement unfold.

Caveat to investor. 2010 has more surprises in store for us. Prepare to sell when valuation has gone too far. However, the liquidity built up over the past two years might keep pushing the stocks higher, until a tipping point where significant correction would set in.