Well, recently I've been asked by friends who are interested in Value Investing what has the STI (Straits Times Index) been like for the past 20 years or so. Will the recent market meltdown cause a panic so severe that markets will never ever recover? My answer is simple. According to history, the market in USA and Singapore will always recover over-time after a recession. The best time to buy a stock is during a recession's lowest. Recessions usually last between 2-3 years. So buy at 1-1.5 years after the start of the recession. If you were to look at the chart that I've attached, The Asian Financial Crisis began in July 1997 and extended all the way reaching its low at around 1999. That is approximately 1.5 years. From 1999 to 2000, the bulls dominated sending the STI from a low of 900 points to a high of 2500 points. Do not over panic during a bear market, remember that opportunity lies during times of adversity. The Great Singapore Sale is not a sale of clothes and bags but a sale during a Recession to buy stocks cheap at 50-60% discount!
3 comments:
u run with the bulls and hunt with the bears.. and since the market in the near-term does not look too good, i would say lets start hunting - do your proper due diligence before going for the kill.
hey sam, nice chart to look at. looks like we going down now
Bro, can you update the above graph to to date?
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