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).

The market correction over the past 3 weeks has got many people worried, myself included.



Warping up 2009, Looking forward 2010
What a roller coaster ride is was for 2009. The year started with the continued free falling of the market from the financial down melt down of 2007-2008. Then in March, the market stage a spectacular recovery. Skeptics said it is just a bear market rally and the worst is yet to come, drawing parallel from 1930s Great Depression period.
But it was not to be, the market rallied to a second dip in end Jun, early July. Now pundit wasn’t so sure. Is it the end of the rally or more is to come?
Well, the market never look back since then, ending 2009 in a high note.
I hope you had a profitable 2009 and another ahead in 2010.
Happy New Year!