Do I buy, hold or sell?

thesundaytimes Oct 18, 2009

Sumiko asked: "The recession is over but I still feel the pinch. Could the stock market be my answer?"

CreateWeath8888 said: "Why not, stay invested in stock market, and one won't regret, but one must spend some time and effort to learn"

She said: "The biggest lesson has been how I must think of growing my money instead of letting it sit in a saving account."

I said: "Growing money in stock market is more likely to beat the return in one's saving account, but one must first spend less time in shopping and spend more time in learning how to invest, and same like taking up cooking lesson to learn how to bake a good cake"

Her colleagues who swear that property, not stocks, is the better way to go.

I think that is a common property market myth that return on property is better than stocks.

Most property investors are likely to over-state their returns and under-estimate their risks especially true for investors who are not Nett Worth positive after taking up the housing loans.

If the property investors become highly Nett Worth Negative after taking up the big housing loan, and then one must not forget that Leverage Is A Double Edged Sword - It can also kill.