I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!


Click to email CW8888 or Email ID : jacobng1@gmail.com



Welcome to Ministry of Wealth!

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

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Saturday 31 January 2009

Predicting the Bottom?

We will always hear this in a bear market or down turn: Don't try to pick a market bottom. No one can.

Actually, trying to pick a bottom for stock speculators or value investors is not really that serious if they got it wrong. It is not too difficult to recapitalize and try again to pick another bottom. Wrong again, save hard, recapitalize, and then one more try.

But, there is one group of investors or speculators who think they can PICK the bottom with one try. Who are they? The small capitalized property investors or speculators who think that they are good enough to pick the housing bottom and going in with just ONE BANG. Some even go in highly leveraged with a NOOSE round their neck.

Market wisdom: Don't try to pick a market bottom. No one can. For this worst recession, the path to recovery could be many years. Best is to plan for the worst scenarios.

Property is unlike stock. Stock price is naturally upward bias as the Management and Board is tasked with the roles and responsibilities to take the company continuously to a greater height. For property, there is a natural limit to stop its climb as government will intervene. For property price to drastically increase, a Greater Fool must come to push it up or a Greater Lover to come and fell deeply in love with it and pay at all costs.

If you do not have huge capital, then picking Bottom for stocks may be a better option. If you still can't thinking clearly. Hmm... go to the top of Bukit Timah and sit there, and don't come down if you haven't got an answer.
Related Posts with Thumbnails