Back in Nov, I thought we would have a correction, but we did not. With major indexes sinking again, I feel that the much awaited correction may finally arrive. For this reason, I have exited my various holdings, some even at a loss. This is because I truly feel a correction. The last time we had one was way back in May last year. But, I will be making use of the opportunity to collect shares "on the cheap". However, it is increasingly difficult to do so, as shares are all quite expensive.
But, who knows, this correction may throw up wonderful opportunities. This stance is consistent with an article in today's Straits Times that "traders are viewing any correction in stock prices as an opportunity to buy shares at lower prices. As was evident last year, the key to success in the grind higher is to buy the dips, but not to chase the rallies too hard." The key is to act against all instincts to buy when the everyone else is selling. As Jim Cramer says "When they throw a sale at Macy's, you buy more stuff. You don't panic and run screaming from the mall."
But, just make sure I don't end up buying stuff you do not need. Remember Wilmar.
I have exited
Genting for 7% gain bot 2.03 sold 2.18
Noble for 11% gain bot 2.05 sold 2.28
Olam for 6% gain bot 3.06 sold 3.24
STX OSV for 34% gain (50% exited) bot 0.79 sold 1.06
China Construction Bank for 0 gains bot 7.07 sold 7.13 (nothing left after commissions)
Wilmar for 5% loss. bot 6.01 sold 5.70
The holding period for all of the above is slightly > 1 month.
My existing current portfolio consists of:
BAC
STX OSV
Gold
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