The strong momentum from Asian stock markets these last two weeks has carried the STI index to over 2500 points. It helped that the US stock markets has been going through a great run, and earnings reports from many bell weather companies have all surprised on the upside.
If you have been following my blog, you would know that I was already heavily invested into the stock markets through unit trusts and I added when there were some minor corrections during the last two months. If you are like me, then right now, its time to sit back and enjoy the ride up. It looks to me like we are entering the second phase of the bull market and the next leg up is upon us.
For those that have missed out, there is still time if you have a longer term horizon in mind. I am not selling anything yet, and I intend to stay invested in my holdings for quite some time. The entire bull run will play out over the next 1 to 2 years since it takes time as well for the global economy starts to get back on track.
So, buy on dips. Nothing goes up in one straight line, so markets will inevitably correct and when they do, it would be a good time to buy in.
For those already sitting on profits, its ok to get greedy, but don’t get too greedy! We are far from the top of the cycle yet, but it doesn’t mean markets will only ever go up from here. So, make sure you are diversified, and rebalance once or twice a year. If you find yourself falling too much in love with any one particular market, then pull yourself back from committing even more to a market. Just because it has gone up by spades is not a guarantee it will continue to go up.
So, its been a great week, and it seems the second phase of the bull market is upon us. So, for investors, its time o sit back and enjoy the ride up, its going to be an exciting one!
No comments:
Post a Comment