I am excited at reading on the front page of the Straits Times the above headline. Yes, I should be panicking, but no I am not. Whenever a healine screams like this, it is time to go bargain hunting. Think Aug 2007. Think Sep 2008. Think March 2009. Now, this could yet present the best opportunity of 2011, which has been a rather tepid year.
But is it now the time to buy? Checking on the STI chart, it seems it has more to go before picking up bargains. Let's go back in history.
2007: Market peaked around 20 Jul and intermediate bottomed around 17 Aug.
2007: Market peaked around Oct and bottomed around March.
2008: Market peaked around May and bottomed Oct.
2009: Market bottomed and is peaking around Apr 2011.
This bull run from March 2009, I believe is tiring, but it resembles that of July or Oct 2007. Which means there should be 1 more round, and then the official arrival of the bear market.
But buy now? Not yet, as chart patterns indicate more to fall.
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