Dear Friends,
The market had a correction on May 10 and this prompted a lot of concerns that the market is going to crash. Greed and Fear are the biggest enemies of investors. If you compared the market correction that happened in Jan 2004, this correction is considered not as great as the 2004 correction. Yet as far as history has remembered, the bull market still continued till this day since 2003. Rest assured that we will protect the assets for you, if we can determined that the fall is indeed due to bad economic news and a reccession is pending.
Greed and FearThe market is controlled by greed and fear. The cause of this correction is precisely cause by that. People in emerging markets are greedy to make an easy buck without much knowledge. People are fearful when the market falls and quickly take out their money because they do not understand Mr Market well. These are the main culprit that cause investors not to make money. Our job here is to help investors take away the emotion of greed and fear and to invest rationally.
Rational Investor
Research have shown that a successful investor is one who is rational and disciplined. A irrational move is to sell into the strength of a booming market. The fall may be fast, but the rally may be even faster. The reason why the market falls because the big boys want to shake out those irrational investors who are borrowing money to ride onto the stock market. The police in India is watching out for sucides, banks are watching out for those who can't pay them back from stock investing. Why? These people investing into the stock market are irrational and they are buying into it as a form of gamble without much knowledge. Imagine financial illiterate people in India and Brazil buying into stock markets because the money is easy. Doesn't that sound like Singapore in the roaring eighties when Singaporeans were not well equipped to deal with the stock market and were still throwing everything into it? When the market drops marginally, the irrational investors will have to sell their good position on margin call and the market falls further. After the onslaught is over, the big boys will take over the cheaper stocks which the irrational investors are unable to afford now and the rally will be quick and fast. That is why the poor and middle income lost money during investing and the rich benefit from it.
Will the Rebound come Quickly?
The good news from all parts of world have helped the market rallied strongly for the last few days. Low inflation in America, Booming markets in Latin, Asia and Emerging Europe. The market although is still far from the peak where it fell, the rally has helped the market to recover some of the losses. The Fed is going to announce the next rates raise at the end of June. If all go well, we will see the new high by the of December.
This may be the Last Great Singapore Sale you will see in this round Bull Run.
The market had a correction on May 10 and this prompted a lot of concerns that the market is going to crash. Greed and Fear are the biggest enemies of investors. If you compared the market correction that happened in Jan 2004, this correction is considered not as great as the 2004 correction. Yet as far as history has remembered, the bull market still continued till this day since 2003. Rest assured that we will protect the assets for you, if we can determined that the fall is indeed due to bad economic news and a reccession is pending.
Greed and FearThe market is controlled by greed and fear. The cause of this correction is precisely cause by that. People in emerging markets are greedy to make an easy buck without much knowledge. People are fearful when the market falls and quickly take out their money because they do not understand Mr Market well. These are the main culprit that cause investors not to make money. Our job here is to help investors take away the emotion of greed and fear and to invest rationally.
Rational Investor
Research have shown that a successful investor is one who is rational and disciplined. A irrational move is to sell into the strength of a booming market. The fall may be fast, but the rally may be even faster. The reason why the market falls because the big boys want to shake out those irrational investors who are borrowing money to ride onto the stock market. The police in India is watching out for sucides, banks are watching out for those who can't pay them back from stock investing. Why? These people investing into the stock market are irrational and they are buying into it as a form of gamble without much knowledge. Imagine financial illiterate people in India and Brazil buying into stock markets because the money is easy. Doesn't that sound like Singapore in the roaring eighties when Singaporeans were not well equipped to deal with the stock market and were still throwing everything into it? When the market drops marginally, the irrational investors will have to sell their good position on margin call and the market falls further. After the onslaught is over, the big boys will take over the cheaper stocks which the irrational investors are unable to afford now and the rally will be quick and fast. That is why the poor and middle income lost money during investing and the rich benefit from it.
Will the Rebound come Quickly?
The good news from all parts of world have helped the market rallied strongly for the last few days. Low inflation in America, Booming markets in Latin, Asia and Emerging Europe. The market although is still far from the peak where it fell, the rally has helped the market to recover some of the losses. The Fed is going to announce the next rates raise at the end of June. If all go well, we will see the new high by the of December.
This may be the Last Great Singapore Sale you will see in this round Bull Run.
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