I am penning my thoughts here, in case I would want to refer to them a months later. This would prevent me from recalling the wrong thoughts.
First, the market is getting more dual-tracked. While I guess that both the blue chips and the small stocks would dive in coming week (or weeks), I can see some value in the small stocks. So much so that I am currently fully invested in the market. I have tried to see whether I can sell any of my position, but somehow, I find my positions too inexpensive to be sold. Maybe I may sell if I can spot much better bargains in the coming weeks.
Second, I see that some of the high-flying China stocks may be in for a bad time due to poorer than expected results. Hopefully, this does not happen to the China stocks that I hold. Anyway, if it happens to the stocks that I hold, the damage may be contained, given that these tend to be low PE stocks. (Note: A low PE ratio alone may not imply positve expected returns.)
Third, I am guessing that the broader market, STI, is in for more volatile sessions due to the subprime negativity. Up to now, I am still wondering how the subprime can affect non-financial firms (ie China firms).
Subscribe to:
Post Comments (Atom)
Lowering Risk of Bad Outcomes
As one's net worth gets larger, lowering the risk of bad outcomes becomes more relevant and important. For example, if you have retired ...
-
Buffett has mentioned that an investor should be animated by greed but not be controlled by it. Van Tharp, in Schwager's Market Wizards,...
-
I have discovered that I have made a blunder in my valuation of Hongwei and Contel. That is, I did not take into account of their newly issu...
-
This post was created in Feb 2011. Apr 2017: Updated with 4 books Updated in Dec 2023, Dec 2024, Dec 2025 _________________ In my e...
No comments:
Post a Comment