I had been holding my unit trust funds and watching the current correction.
Originally my plan was to hold and wait out the correction. However, there are new signs to indicate that the current correct will be deeper than anticipated. In view of this, I’m switching strategy.
Most of my unit trust are invested with CPF monies. While some school of thoughts believe that dollar cost averaging is the best strategy, it is not for me.
Active management is my preferred strategy and I believe it is best for my situation. The point is not to catch the maximum (if I had taken action a month back) but to lock in profit.
It is painful to see the gain shrank. But it will be more painful if I had to cut at a lost later. I am selling my Asia, Japan, Korea, Thailand funds.
Popularity: 3%
The market correction over the past 3 weeks has got many people worried, myself included.
The long term in the Straits Time Index
A lot had been said of the value of by and hold in the long term. Many investment book in the market talk about the US market, so the example commonly encountered is the Dow Jones Industrial Average (DJIA).
Take a look at this long term chart:
The continuous long term up trend is easy to see. Despite some major interruptions the buy and hold strategy offered excellent rewards over the years. (If one had brought during the peak of 1930, it would have taken over 25 years to recover the initial capital),
How about the Singapore market? Take a look at the Strait Times Index (STI).
Continue reading ‘The long term in the Straits Time Index’
Popularity: 6%