Aguytrying wrote:Sufficiently Philanga....thropic wrote:sparkly wrote:hisah wrote:@mnandii, spt, sparkly
The week of Aug 23rd has an interesting vol spike similar in appearance to the one on Oct 2014 that forced the index to rally to new highs. But the recent one has weakness behind it. If the index has a massive rally towards the 2015 highs, I'd look to fade that rally as I expect 2016 the sky to come down! One last santa rally and then it gets cold next year.
I agree, the Santa Claus rally cannot be sustained but once the current weakness ends, we will see the mother of all rallies.
Nice chart @Hisah. I see we are back up, thanks to the poor Sept NFP numbers. Still waiting for that surprise FED rate hike. Like Jesus, it will come like a thief
The fall will be a sight to behold!
Nowadays chartists aka cartoons in the last bear are taken very seriously. Shows the gravity of the current situation. Like Muthawamunene I'm waiting for the big guns to fall and swoop
He he. I just got mentioned.
My strategy is simple, I am young (early 20's), I can afford to look at the long term. I'm not really waiting for "..the big guns to fall and swoop", I wait for ridiculous valuations to come to an end. If valuations at the stock market are bonkers, there are other investment channels.
Of course one has to know how to value a company, and this is not just by reading balance sheets and ratios, it's knowing as much as you can about the industry, the company, the market and the environment.
I am a big fan of Peter Lynch esp the story where the husband was poring over financial reports and documents and failed to see the wife buying clothes made by a small company whose stock later exploded.
So as the economic turmoil ensues, there are companies with solid growth trajectories whose stock prices are getting beaten up - these I like.
ENERGY/UTILITIESI have been slowly accumulating utilities cautiously due to gov involvement, rights issues and the new tender irregularities (I hope these will be resolved quickly and not be repeated). I think the energy sector is a great place to park money as a base for the portfolio. Utilities won't shine as much high-finance stocks, but they are relatively stable on the slumps. The growth is slow and capital intensive, but with good management the growth in returns is healthy. Even Buffet had some G.E as a base.
CHANGE IN PERCEPTION. Good management is also to look out for. When management empowers employees with programs such as Kaizen - UNGA and G2G - KENGEN, the mentality of the workers changes. And motivated employees who take pride in their work are great assets. I also think that when the farmers start practicing the agricultural education they are getting now, UNGA will reap handsomely. Of course this is not certain, but that's why its called investing.
The cheapening valuations just make it the right time to make that decision to put your spare income in companies you think are doing things righ. I try not to time the market, I only have how much self loathing I am willing to live with if I buy too early or sell to late, but the bottom line is that I have an income generating asset.