As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

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Wednesday, 7 February 2018

Having War Chest And Deploying Your War Chest Is Two Different Thing!!!


Read? What was I thinking and feeling in Mar 2009 Bear market low? (2)


Createwealth8888 till today can still remember clearly when two very experienced cyber investing kakis in the stock market who believed in their favourite and trusted Guru's view in Mar 2009 were congratulating themselves for staying very cash rich in Mar 2009. One was 90% cash and the other 100% cash!!! 


6 comments:

  1. Alamak!

    i was the goondo who bought all the way down from 2008(too early) till 2009 March (bottom), then chickened out. Of course i did not know it was the bottom, man.

    No more guts though still have capital.

    If i continue to buy, ho say man.

    But my stock portfolio lost money to the tune of almost 50% at the lowest ebb of the market.

    This was the worst case for me in my investing history.

    To tell the truth, i was definitely caught by surprise.
    Then another surprise was this bull market lasted 9 years.

    Also such severed bear market recovered quite fast within 2 to 3 years my portfolio was O. K.

    i was surprised again.

    Albeit, this was the worst bear market i encountered, and i came out too early and did not buy when the market dipped 15 to 20 % in 2016 which i usually will scale buying in.

    Must have been too stunned by this very severe bear market.

    Nevertheless, i have come out surviving, unscathed only a little cuts & tears, here & there, that soon healed.

    i wonder what has happened to the 90% to 100% in cash your 2 kakis?

    How they are doing now?

    Never mind all the past, what's next is the real thing.

    Amen.
























    ReplyDelete
  2. First, U must be able to hold your heart in your hands without trembling.

    And for days in and days out.

    Try at your own risks.

    ReplyDelete
  3. Hi temperament long time no see,

    wow saw the 666 drop and come back to kay poh...

    nobody can time. But maybe better to have 2 instruments. eg if u have an instrument that when stock down, that instrument up, or vice versa..

    Then when market down, let’s say gold and silver goes up, then maybe can sell the metals to buy stocks... if metals also go down w stocks, then :-(

    just have to wait.. hahaha

    ReplyDelete
  4. Yes!

    I actually agree sell whatever goes up a lot and buy whatever goes down a lot.

    i have read it somewhere.

    My experience is such a scenario seldom happens.

    Usually now all asset markets go down together.

    Now even Allen Greenspan (if I recall correctly) think there are 2 bubbles forming at the same time; Stock &. Bond bubbles.


    And when it happens, we somehow forget or dare to buy whatever has gone down a lot.

    And I think the worse to happen is we do nothing. We don't sell either what has gone out a lot.

    In a sense, buy too early and sell too early is better do nothing.

    U still make some money and your capital is safer rotting in the bank then getting a higher dividends from risking in the stock market.

    Just remember if your capital is rotting in the bank, it is capital that is free to be deployed for the next investment opportunity.

    This is my 2 cents worth of investing idea.

    Anytime capital is out of the bank is dead capital.



    ReplyDelete
    Replies
    1. Yes the money rotting in the bank is better or maybe use some to pay down debts like housing loans etc is better than deployed for the sake of deploying.

      Hahaha.. Allen Greenspan creates the problem, now he left Fed, starts to comment on the problem he knew so well, bcos he is one of the contributors..

      Delete

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