ARE YOU BUYING NOW?

STI touched 2,581 points earlier today. That's about 1,000 points from one year highs of 3,549.

But what's worrisome is the velocity at which these levels were breached. Bloomberg compared Singapore's market loss for 2015 to Greece's. 15% loss it touted.

With year to date performance for 2016 so much more pitiful than Bloomberg's time-stamped article, we all now know where the hot money flowed into all this while. 

Our shores.

Buy where you'd ask?

ARE YOU ALL CASH?

An acquaintance was discussing with me on the recent 'plunge' of China markets and its ramifications.

I cooed that I was 'all cash' at the moment and he threw me a look and said, "I am not so sure if it is good to be all cash now'. 

I went away not thinking about it for another 6 hours. At the end of the night, I concluded it was a good time to be all cash.

Why? Here's 4 possible reasons:

1.  The absolute edge in life is buying power. 

2.  Markets are presenting good opportunities to enter several sectors, including equities and bonds, but not Singapore properties.

3.  This is further exacerbated by political woes and turmoils in Europe, Middle East, East Asia and South America.

4.  And unless you are buying properties or cars in SG now, deflation seems to be trumping inflation.

So why are people not in an all cash position? Here's 4 possible explanations:

1.  They have already vested their money with no cash to deploy.

2.  They have debts from home/car loans to service.

3.  They have a fear of missing out. They perceive the need to get more out of their cash instead of leaving it in the bank and gnawed away by inflation.

4.  They do not have that much cash to begin with.

The good thing about being a young retail investor is you have time on your side. Work hard, save up the money, deploy them in tranches at significant corrections and wait it out. Do be patient. 

Cheerios.

all cash, stock market, inflation, deflation, are you all cash?, retail investor, 

NIBBLE YOUR LIFE AWAY

You will hear the common refrain from some gurus or bloggers who write about the stock market and financial issues locally, especially when markets are roiled:

The stock is undervalued, nibble some.

The stock is trading below NAV, buy some.

Dollar cost averaging/value investing is the way to go. 

Buy regularly, every month/quarter/half a year.

I do not disagree at buying. But at the rate that they are urging you, you will be eaten up. Soon enough.

The net effect is obvious. 

Keep buying. Keep churning brokerage. Keep fees coming. Keep the brokerage firms going. Keep your broker employed. 

By the time you are done nibbling at ST Engineering so many times from a recent 6-month high of $3.80 to a low of $2.80, you are all negative from the fees paid to your brokerage.

You know what to do the next time someone urge you to nibble, or tell you they have been nibbling some.

FO.