It can be tough to bring yourself to buy a stock that’s scaling a new all-time high.
When a business is doing well, investors will naturally bid up its share price.
However, weak short-term sentiment may lead to a sharp decline in share prices across the board, including blue-chip stocks.
Such falls may present a great opportunity to accumulate shares of strong, well-run companies.
Recently, the share price of Singapore’s largest bank, DBS Group (SGX: D05), fell nearly 10% from its all-time high close of S$37.25.
Are the lender’s shares worth accumulating, or should you hold back?
Robust financials
First, let’s examine the financial standing of the bank as it navigates the choppy economic landscape over the last two years.
The bank recently reported a record net profit of S$6.8 billion for its fiscal 2021 (FY2021).
This stellar performance came about despite a 7% year on year fall in net interest income....