Monday 8 July 2013

Hectic June but quiet

It has been a hectic time in June in both at my work and financial markets worldwide. I have been quietly watching the markets for opportunities and let me tell you..opportunities are plenty right now. Most counters in Singapore have been correcting to attractive buy levels, but not all. My hands are itchy but i refrain myself from going crazy. Prior to June, i already reduced my exposure in volatile stocks and started to hold onto more cash. Hope you did the same...because short terms corrections do occur during a bull run. Personally i believe we are not hitting peak levels YET. I may be dead wrong and we are actually in the starting phases of a full blown market crash. I am still doubtfull. So lets get help from this famous chart below:

 
Could this be the perfect bull trap right now? YES
Could this be just a normal correction before we head to higher highs (pre 2008)? YES 

I guess we will only know for sure when it is over. My only advice is stick to valuations which are realistic. For example, Starhub has dropped 12% from its peak at $4.70 to $4.10 level now. Yes it is cheaper but i wouldn't put a single cent into it now because it is still too expensive. On the other hand, Chinese stocks have really been doing down ALOT and offer great value, have a look at China Life Insurance, the biggest life insurance company in the world. 



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