21 January 2013

Only Well Prepared and Brave People Catch Opportunity: Investing Insight

Well, suddenly, FBMKLCI dropped around 40 points yesterday. What happens? I did not find any news until my remisier SMS and inform me that the reason to cause this 'adjustment' was a rumour of "parliament will be dissolved soon". Come on. We all supposedly know that the parliament will be dissolved within 3 months. So, why this rumour is still so 'powerful' to 'shake' FBMKLCI down?

Personally, most of blue chip was almost valued or already over-valued for me. So, I did not have any blue chip. It was valued, obviously. The appreciation of market price did not in-line with the profit of the companies in last few years. Any sluggish signal or negative news can affect the expectation and cause panic sell immediately. Thus, it is not a surprise to see those over-valued companies adjusted back to valued or even undervalued condition.

I believe most of investors are figuring out whether need to leave, stay or in during this critical period. Since it is better to spend time to prepare oneself rather than speculating the trend, my strategy is quite simple: Be prepare for both trends: Up and Down.

UP: It is no point for me to cheap sell my undervalued counters, as long as I have sufficient fund to rebalance them.

DOWN: Using my reserved fund to rebalance or cheap buy more shares when discounted price appears.

I believe that only Well Prepared and Brave People Catch Opportunity. Can I once again catch the opportunity? Since I already prepared since last month, it will merely depend on my spirit of brave. That's all for today. More fascinating articles and sharing will be updated from time to time in Xaivier Blog. So, you are welcome to subscribe our feed, look at our sitemap or simply visit our Homepage for latest sharing.

Written by: Xaivier Chia

(P/S: The above sharing is solely based on personal insight. Please do not take it seriously. However, your valuable feedback are very welcome.)

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