ValueGrowthInvesting
(VGI) READ BEFORE YOU SELL EVERYTHING
ValueGrowthInvestor
Publish date: Fri, 24 Jun 2016, 03:20 PM
ValueGrowthInvestor
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Looking for that rare combination, where companies exhibit signs of above-average growth whilst trading at undervalued prices due to market mispricings. Hence, value growth investing.
Unless you have been living under a rock, you probably heard that the UK has decided not to be part of the European Union. Big, huge surprise to the market as all major markets had priced UK to remain in the bloc.
So, what now? Markets are tumbling with no bottom in sight. European markets look to be opening at a massive -10% decline and the US will open later and should drop at least 3-4%. Should you sell everything and keep your pants?
No! I believe that if you did not sell before the Brexit happened, chances are you have already missed the boat and you are behind the curve! The downside is already here and you must be able to stomach a slight further decrease. Since the major surprise had already happened, another major huge drop is unlikely to happen. Remember, markets react most to something totally unexpected. But after the fact, i.e. when it has already happened, selling is not necessarily the best idea.
So, hold on to your stocks. Just make sure 2 things: 1) Do not use margin financing as you do not know how far the bottom is and 2) Do not buy stocks with direct and obvious negativer repurcussions from the Brexit, i.e. major customers in Europe or UK. Other than that, despite lower valuation expectations for stocks, you should be fine.
In fact, when everyone is panicking and selling, you should be the BUYER! The best investors have always been contrarian investors who buy when everyone sells and sells when everyone buys. Don't worry. This is not the end of the world. Go take a nap, enjoy the weekend.
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Discussions
6 people like this. Showing 15 of 15 comments
A good piece of advice to those panicky and irrational investors out there after the repercussions of Brexit. Thanks VGI.
2016-06-24 17:23
The last hour rally really potong stim. I was hoping for more discounts, which may occur on Monday
2016-06-24 17:46
For those buy at high , is better to sell quickly when there is stil some min profits.
Those advise you don't sell , in fact they are doing or thinking another way now. Lol
Want to keep then keep those companies will gain benefits from weakening of myr
2016-06-25 03:40
No matter how, next week klci sure will dump . So better sell high and buy low after market hits iTS lowest.
2016-06-25 03:48
Dow Jones Industrial Average (^DJI) -DJI
Watchlist
17,400.00 Down 611.07(3.39%) 4:05PM EDT
Could this be a one day affair only, just a flash of the pan?
2016-06-25 04:08
of course there will be a bottom.....
bottom here?
where got like that one.
2016-06-25 07:02
oil price stable around 45-50, palm oil stable at 2400-2600 ,najib government are firm than before , i dont see any crisis in malaysia stock market . Any big drop because of brexit is time to grab more.
2016-06-25 15:28
Well, at least we can be sure that there won't be any interest rate hike anytime soon.
2016-06-26 13:11
in any market conditions, there're always some stocks or sectors to be avoided or to be invested.
2016-06-26 18:36
Now that the new has been announced, market has dipped, i find that the hype over what brexit will cause has died down too. Stock market seems to be back to how it was before brexit.
2016-07-01 11:59
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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well done!
2016-06-24 16:33