in fact, i have overspent, using up whatever remaining resources i had left last month to purchase celestial when it was still above 30cents. The S-chip prices have since never rebounded back, and in need of cash, i am considering to sell other non-S shares which are still making a bit of $, whilst waiting out to see what will happen to the S-chips.
In a severe bear market, it makes sense to be careful of putting down too much money all at once, as there is no indication the recession is going to lift anytime soon. What I can suggest from personal experience is to average down slowly on companies you feel very confident of, and which you have researched independently (not based on analysts\' reports). Also, keep a buffer of 6-12 months of cash for emergency spending. Keep your your savings rate so that you will have excess cash to invest. During this downturn, I am maintaining my savings rate at about 40% of take-home pay.
I had lunch with a couple of senior managements recently. The feedback was not pretty. While there was a rebound in orders for March, April orders dropped again significantly, in the region of 20%. Several of these senior managers told me that their bosses are contemplating shutting down the Singapore operations given the high costs of labour. I believe several SMEs listed in SGX may not survive this turmoil. Hence, I prefer to look at companies who have strong balance sheets and will not need to reply on banks\' borrowings to survive for the next 18 months.
hello, i hv a query. Keppel land, ASL marine and Golden Agrico has corrected sharply recently. is it consolidation is taking place now? any idea how long and how much it will correct? thank you :S :S
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