Thursday, November 22, 2007

The Volatile Stock Markets

STI dropped from 3,850 in Mid Oct to 3,312 today
Hang Seng dropped from nearly 32,000 late Oct to 26,000 today
Dow Jones dropped from 14,300 to 12,800
Nasdaq from 2,860 to 2,580

My investment portfolio falls from 10% profit to a loss of 3% in less than 1 month which translate to 13% fall. The economy is getting volatile and seemingly crazy...
The market sentiment is weak. The housing slump is there, Oil prices keep going up, US dollar keep dropping, Negative Economic news still pouring from US. Are we heading for a recession soon?
Probably yes but brave investors are still looking for good bargains as the stocks seem to bottom. I am still optimistic, especially those in Asia that bourses will shake off these bad news and start rising again in the near future.
I remained invested but cautiously. Using dollar cost averaging, I invest a fixed amount every month into few Unit Trusts with different geography and themes. The extra cash, I look out for good stock which seems oversold.
Good luck in your investments, Guys.


Anonymous said...

Yes better to keep cash...

Khiat Han Hwee Adrian said...

Its not a good choice either.