By: La Papillion
With the STI coming down to 1880 and DJ showing no signs of breaking down from its fast and rapid decline southwards, there is plenty of fear in the market. Once, I had heard of people talking about stocks and shares..but now, the library is full of books on investing that nobody is interested to borrow and everyone is not looking at the share prices now. Is it the first sign of market bottoming?
My support level for STI is still 1800, which I think is a pretty safe level to do something with your excess cash. Do not be like ferrochina who over leveraged itself; use those savings that you do not need for the next 5-10 yrs, for who knows how long this episode will last. Popular sayings are that the crisis will last 7 months, based on historical bear markets…so perhaps in mid 2009, we’ll be seeing some semblance of stability again?
Below is the encouraging post by Warren Buffett for all who has an interest in the stock market. His adage, while getting close to being cliches, are still simple and easy to understand. Just don’t do it blindly :)
Here’s his opinion piece: Read more..