Abb – My reading of the market is that the European crisis is far from over and more bad news are likely to surface in the short term – (I could be wrong!). If I have a windfall of $100,000 now, I would not be in a hurry to buy (stocks with potential of giving high returns) for the mid- to longer-term till the market has somewhat stabilized. I believe the likelihood of the prices of many good stocks dropping further is rather high as the world economy does not look like improving anytime soon. We may have ample good choices then.
Half a year on, and your words have proven to be prophetic!
The million $ question now is : What next?
[hr]
[garl 21-01-2012]:
Ah Yeh! Market bull has returned but I fear the bears could still rush out suddenly in the night and catch us. The Euro crisis could suddenly turn down, then we have a sudden plunge in the markets.
Dear Forummers, Is it realistic to expect a million dollar profit from the stock market? The answer is yes. But you definately need to have capital to start with. The successful story of Isaac shows this. But he did not start his investment with $1000 in the bank. He has capital that is generating new capital every time he invests in a stock. Similarly, I started with around S$300,000 in the bank account, and gradually adding to the portofolio when i have spare cash. Today, i have a pretty nice portfolio of property, stocks, currencies and ETFs which generate good yields for me yearly.
It has been an interesting 6 months in 2012 and one can only hope that the second half of 2012 would be better.
Somebody asked for suggestions on how to make money in this turmoil market. While I cannot guarantee nor promise a confirmed profit, I am more than happy to share with you what have been keeping me busy these days;
1) Shorting Euro --- I believe that Greece will exit EU. Germany and the rest are just putting up a show to pre-empt the world that it will happen. So when it happen, it will not come as a surprise and the impact will be minimised. Hence, I have shorted Euro a couple of times in April, May and June and I believe it will continue to fall.
2) Buying USD --- I have been buying USD over the past few months. My belief that Euro will drop led me to buy USD as I believe all the money will look for a safe haven, which is the greenback. Having said that, I believe USD may strengthen towards the RMB as China may issue stimulus package to boost its economy.
3) ETF shorting the US government bond --- I do not believe that the US Treasury Bill should command a 1.7% yield given that they are printing money. Hence, I have searched and found a ETF in Nasdaq which shorts US Treasury Bills. It is a small part of my portfolio.
4) Leaders in their respective sectors --- I believe this winter will be a long one. Hence, I am only buying the top 2 companies in their respective industries which I believe will continue to be there in the next 5 years. There are quite a few around in SGX. Do your homework and you can see them.
Good luck to all in 2012. It is a long winter but nevertheless, it will prove to be a very interesting and rewarding period for those who worked hard.
I hope you don't mind, But with your portfolio include so many sector and you are looking at a long winter, why not sell everything and wait it out, since you are sure of a long winter. Do it fast, before winter frozen all your profit you accumulate so hard.
To stay for div yield is self defeating. with stock price going dowm, you are virtually in fact paying yourself dividend.
I do not long stock, except trading and for short term, for i believe the coming rally is just a bear rally and 2013 will be the start of a deep recession. I believe to trade for capital gain and not div. I trade forex, commodities and mostly stock. So far, i have make ard 800k, i hope i can make it 1.5 to 2m by yr end, so i can do more with what i already have for my fellow country man in Indonesia and those in Mynmar.
May God help me, it is small money in Singapore,( your flat and your CPF make many millionaire here) but 1.5m is a lot for Mynmar for sure. You be surprise that I can do many thing with that amount which you cannot do here.
May all be well.
[hr]
[MacGyver 08-06-2012]:
Dear Forummers,
It has been an interesting 6 months in 2012 and one can only hope that the second half of 2012 would be better.
Somebody asked for suggestions on how to make money in this turmoil market. While I cannot guarantee nor promise a confirmed profit, I am more than happy to share with you what have been keeping me busy these days;
1) Shorting Euro --- I believe that Greece will exit EU. Germany and the rest are just putting up a show to pre-empt the world that it will happen. So when it happen, it will not come as a surprise and the impact will be minimised. Hence, I have shorted Euro a couple of times in April, May and June and I believe it will continue to fall.
2) Buying USD --- I have been buying USD over the past few months. My belief that Euro will drop led me to buy USD as I believe all the money will look for a safe haven, which is the greenback. Having said that, I believe USD may strengthen towards the RMB as China may issue stimulus package to boost its economy.
3) ETF shorting the US government bond --- I do not believe that the US Treasury Bill should command a 1.7% yield given that they are printing money. Hence, I have searched and found a ETF in Nasdaq which shorts US Treasury Bills. It is a small part of my portfolio.
4) Leaders in their respective sectors --- I believe this winter will be a long one. Hence, I am only buying the top 2 companies in their respective industries which I believe will continue to be there in the next 5 years. There are quite a few around in SGX. Do your homework and you can see them.
Good luck to all in 2012. It is a long winter but nevertheless, it will prove to be a very interesting and rewarding period for those who worked hard.
The deeper the bad news, the more the chances of a strong rebound. When investors are always faced with intensely negative news, hosei! That's when bull markets begin --- right in the middle of all the bad news. Historically the bull markets rewarded investors with multibaggers.
NextInsight
a hub for serious investors
