The government has no choice but to revive the economy with infra projects. That’s what China and the US is doing. Only question is whether they can win the projects.....Add oil Ageson, many investors are counting on you!
Compared to glove counters, there may be plenty of room for property counters to recover once the rotational play shifts to this sector which has been sleeping or consolidating for so many years....
Usually traders like to buy on the rumours &sell on the news, probably this is their job.. let them push down the price further with the news first, need to be very patient....Investors will buy low & sell high, with even a lot of patience too.. haha.. my thought.
An investor must prepare both financially and psychologically for the fluctuations certain to occur in the market.
There are two ways an investor tries to profit from fluctuations:
1. Timing: Buy when you think the price will go up, and then sell once it goes up. 2. Pricing: Buy when the price is below fair value and sell once it reaches or exceeds fair value.
Consistent market timing is exceptionally difficult, as is evident by the countless market predictions and forecasts by industry professionals that differ from actual events by a wide margin. The variety of these predictions is great enough that an investor can make any move he chooses and find a prediction that supports this move.
Graham goes so far as to say it is absurd to think that the general public can ever make money out of market forecasting. There is no basis in logic or history to believe otherwise.
With regard to the pricing approach, Graham says that this is also extremely difficult to properly execute. Cycles often last for 5 years or more which causes people to lose their nerve and act irrationally. For example, in a prolonged bull market, people may fear being left behind, so they buy at the slightest indication of a bear market, feel vindicated as the prices escalate further, and then lose when the real bear market returns.
Also, any signals identified by experts to help determine whether this is a bear or bull market have been shown to be inconsistent in successfully identifying the position in the market cycle.
Conclusion: If you are banking on market fluctuations, you will not consistently perform well. Market fluctuations are not sound portfolio policy!
The intelligent investor uses a formulaic approach to determine whether stock prices have risen too high and he should sell, or prices have dropped significantly, and he should buy. Or, in other words, if he should alter the allocation of stocks to bonds in his portfolio (as per the tactical asset allocation policy that Graham discusses in previous chapters). The ideal approach is the re-balancing approach discussed in previous chapters (varying from 50-50 allocation to up to 75-25, and reviewing at set intervals throughout the year).
Business Valuation and Stock-Market Valuation
The stock market is paradoxical in that the highest grade stocks are often the most speculative because they gain great premiums over book value and are based more on the changing moods of the market and its confidence in the premium valuation it had put on the company in the first place. Thus, for conservative investors, they would be best to focus on companies with relatively low premiums placed upon them - a market rate no more than 1/3 above the net tangible-asset value.
However, a stock does not become sound because it can be bought close to asset value. The intelligent investor must also demand a satisfactory price-earnings ratio, sufficiently strong financial position, and the prospect of earnings being maintained over the years.
Intelligent Investors with portfolios close to the net tangible asset valuation of the underlying companies need worry less about stock market fluctuations than those who paid high multiples of earnings and assets. The intelligent investor should disregard the market price and not allow the mistakes that the market will make in its valuation to affect his feelings about the business. Do not let the market’s madness fool you into selling your shares at a loss - such a move requires reasoned judgment independent of the market price.
Big shark was testing to make retailer @ minor traders fear. In reality they collected in bulk amount.Don't worry because it is down but not in big volume
last time i promote howah when 16-18c and shoot up to over 50c. Then, I also involved in pushing RGD over 50% one day. Now I give you all early hint, ageson is in accumulation mode. Will shoot to over 30c in no time.
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....
Khai Zam
420 posts
Posted by Khai Zam > 2020-06-09 13:12 | Report Abuse
accumulate now and ride the uptrend later