In my previous posts, I have shared with readers the importance of “cutting losses” in investments which have not gone up to their expectations. I hope that the recent performance of the Singapore stocks markets have convinced some of you that instead of seeing one’s capital “locked up” in investments which keep going below one’s costs, it would have been more beneficial for the investors to “cut their losses” earlier and channel the capital into other worthier investments unless one does not mind buying and holding one’s investment, especially in dividends-yielding stocks.
I would however argue that a “buy and hold” strategy is not as a good a strategy in today’s stock markets investing. Just look at the performance of blue-chip stocks to date, many of them have gone down by quite a fair bit, price-wise. Moving one’s monies around to capture good investment opportunities is what Robert Kiyosaki termed ......