Week on week, the STI fell 2.19% while my portfolio saw 4.23% whittling away. The biggest losers were my position in financials UOB-KH and retailer FJ Benjamin. Etika showed some promise this week surging to $0.445 at some point midweek, but returned back to $0.39 in line with the blood bath. During the week, penny stocks like Advanced Holdings, Yong Xin saw their roller coaster rides.
Other notable events were Singtel clinching the rights to the BPL. This has caused upset to existing StarHub subscribers who now might have to get a new decoder box.
My friend asked me for a reason for the blood letting on Wall Street on Thursday. I told him that there were no reasons for the 200 points drop in the DJIA. What I did tell him is that there is plenty of volatility in the market as the markets try to grapple with excessive liquidity in the system, moribund economies and a weakening of the US dollar. I will post my research on volatility in the market soon, once I have meditated over it. I also told him to read the Kenneth Fisher book.
Looking ahead, nothing is expected to change. I hope you mustered some courage to buy in today’s market and have the holding power to last 3 years. Obama will need some time to work with the G-20 leaders to fix the financial systems Stay invested for the long term. Meanwhile, be prepared for swings to the up and down, as punters gamble in the market, along with the “buy-and-hold”gang.