Monday, August 24, 2015

Short update: Expect pain


Just a while ago it was -8.20% and it hasn't even reached the half day lunch break yet.

Things are getting ugly in the markets, but unfortunately, I believe that we haven't even seen the big down moves yet. Oil is almost on the way to tag the $38 handle, which is crazy to imagine. I personally do not believe that such low oil prices will be sustained. This plunge seems to be clearing out the non-believers, and I will gladly jump back onto the O&G play when I smell it bottom. The US markets ought to open red (futures indicating at least a 1% drop), considering the current bloodbath in the Asian markets.

I think that the global markets stay in the dumps til at least the end of the year. But then again, you have to know that I've been a bear since like, forever.

So many Singapore stocks look unbelievably attractive at this point now, but my hands are tied because of my property ambitions. If not, I would be out there catching knives along with the rest of everybody. In all seriousness, there are many stocks that look like they are at great valuations now. Building a portfolio with at least 6% dividend yield with what is available now is easy. If you want to push to 8%, I think that's possible too.

This is probably the worse "meltdown" that investors like me (fresh off the boat, post-GFC experience only) have ever seen before. I've done my history research. Things can get way way way uglier.

Don't go out catching knives without protection.

1 comment:

  1. As we all know that world wide stock market crash on Monday (24th August), Dues to this SGX Stock market price fluctuate in every section, even in Crude oil, as well as Forex also.
    The turmoil was led by China, whose Shanghai Composite sank 8.5 percent on August 24, followed by an additional 7.6 percent loss the next day.
    www.mmfsolutions.sg

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