Every two to three years, we seemed to have a variety of the Great Singapore Sale in the stock market that are back and enticing investor’s appetite to invest into the market.
With the STI index now down close to 20% from the recent peak, it appears to have given the cash investors another test to check their perseverance in whether they would succumb their hard cold cash into the market at this point. After all, what the cash investors are aiming are the huge once in a lifetime opportunities and not this sort of minor correction every two or three years.
That’s what holding cash are for in the first place I assume.
Fortunately (or unfortunately), this is out of my bound as my allocation are mostly filled close to 100% of the time.
This is where folks are tinkering with ideas and excitement that I generally don’t.
However, if you ask me, the best time to invest is where there are full of uncertainties surrounding the economy itself.
With the trade war unresolved, weak earnings guidance or the upcoming mid-term election, these are my “safe-haven” opportunities to invest. It is not when the market is doing all well that I started to put my money in.
With a long term horizon perpetually, it is difficult to see how investors would lose money if they invest in good quality companies. The only problem is if they buy it high enough with little margin of safety. Even so, time will reduce the average costs over time.
The best time to invest in any given market is now.
You just need to keep adding on through your dividends quarterly when you receive them.
But there’ll be lots of noises around when the market will bottom out from here.
It feels like a dejavu over again.
Thanks for reading.
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