Wow! Everyone must have missed yesterday's tremendous rally which saw the STI surge close to 40 points albeit on thin volumes. I have been doing my sums and looking at the charts and assessing the global situation. My sums look a bit precarious, as I intend to go overseas for one more trip as well as get a big item for my hobby. The charts tell me that there is a higher possibility of downside (2,900 - 3,000) but as we have witnessed, sinking below 3,000 seems like a hard task to accomplish. And the global situation tells me that yes, the financial stimulus are ending and debt fears are rising, but overall economies look firm (less China)- any financial apocalypse should be priced in.
So the question is, if I believe what I have said earlier, that there will be short term weaknesses but by the year's end all will be well, which stock should I buy? As MusicWhiz had posted earlier, it has been a time for contemplation and step up research since the markets are offering stocks on sale. Unfortunately for me, I have been a bit tight travelling and busy and work. On one hand, i am spared the gut wrenching market plunges but on the other, I am not attuned to which stocks hold value.
Tentatively, I will look through the stocks that I have covered before before making my move. What about you? What stock will you buy this time?